The Indian Renewable Energy Development Agency (IREDA) IPO marked a remarkable milestone with a robust listing, and the excitement surrounding it did not wane. Market experts, buoyed by the strong debut, eagerly shared advice with investors, emphasizing the potential for continued gains. Interestingly, those who opted to hold onto their investments rather than immediately booking profits post-listing found themselves in a favorable position, enjoying a substantial 87% profit by the close of the market, thanks to the upper circuit.
The listing day saw IREDA IPO shares making a splash on the Bombay Stock Exchange (BSE) at Rs 50, translating to a noteworthy listing gain of 56.25% for IPO investors. The initial offer price had been set in the range of Rs 30-32 per share, making the listing performance even more remarkable. However, the stock’s upward momentum did not halt there. It not only sustained its positive trajectory but closed at the upper circuit of 20%, culminating in a closing price of Rs 59.99 per share.
This stellar debut had substantial implications for IREDA’s market capitalization, nearly doubling it to an impressive Rs 16,124 crore. The success of the IPO exceeded analysts’ expectations, as they had initially predicted a premium of around 30-35% over the issue price. The overall market sentiment remained positive, reflecting the confidence and enthusiasm surrounding IREDA’s future prospects in the renewable energy sector.
Expert Opinions on IREDA IPO shares
Shivani Nyati, the wealth head at Swastika Investmart, noted that IREDA’s stellar listing exceeded market expectations, attributing it to the company’s robust fundamentals and growth potential. The focus on the burgeoning renewable energy sector positions IREDA as a compelling investment option, especially in the context of government initiatives and escalating environmental concerns.
Prashant Tapase, a Research Analyst at Mehta Equities and Senior VP Research, emphasized IREDA’s role as a growth proxy for the Indian renewable energy sector. He recommended a long-term hold strategy, underlining the company’s potential to capitalize on the sector’s anticipated growth in the coming years.
About IREDA IPO shares
Incorporated in March 1987, IREDA is a Mini Ratna (Category – I) government enterprise administratively controlled by the Ministry of New and Renewable Energy (MNRE). With over 36 years of experience, IREDA actively promotes, develops, and extends financial assistance for new and renewable energy projects. The company’s commitment to facilitating a greener and more sustainable future is reflected in its highest-ever loan sanctions and disbursements in FY 2021-22.
Objectives of the IREDA IPO
The IPO aimed to raise capital for future requirements and onward lending, showcasing IREDA’s strategic vision. The company expects to leverage the benefits of listing, enhancing its brand image and creating a public market for equity shares in India.
IREDA’s IPO has not only proven to be a financial success for early investors but has also signaled a positive trajectory for the renewable energy sector in India. With a strong debut and optimistic expert opinions, IREDA stands as a beacon in the transition towards a greener and more sustainable future. As the company continues its journey, investors are presented with an exciting opportunity to be part of the renewable energy revolution in India.
Q1: How much did IREDA raise through its IPO?
A: IREDA raised Rs 2,150 crore through its IPO.
Q2: What was the listing gain for IPO investors?
A: IPO investors enjoyed a listing gain of 56.25%, with shares closing at the upper circuit of 20%.
Q3: What is the smallest lot size available to retail investors?
A: The minimum lot size for retail investors is 460 shares.
Q4: What is the market capital of IREDA post-listing?
A: The market capital of IREDA almost doubled to Rs 16,124 crore after its blockbuster debut.
Q5: What is the company’s focus, according to experts?
A: Experts highlight IREDA’s strong financial performance and focus on the growing renewable energy sector as key investment factors.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.