IREDA IPO Listing: Shares of state-owned Indian Renewable Energy Development Agency (IREDA) on Wednesday made a stellar stock market debut on bourses. On the BSE and NSE, the shares listed at an impressive Rs 50 per share, a premium of 56 per cent over its IPO price of Rs 32. As of 10:42 am, the shares were trading at a premium of 72 per cent at Rs 54.80.
On the BSE, shares of IREDA opened at Rs 50, posting a listing gain of 56 per cent. It then rose further to hit a high of Rs 55.70 before hitting a low of Rs 49.99 a share. It is now trading around Rs 54.7, which is nearly 71 per cent higher than the IPO issue price of Rs 32 and 8.58 higher than the opening price of Rs 50.
Shivani Nyati, head (wealth) at Swastika Investmart, said, “In a much-anticipated debut, IREDA, a leading non-banking financial institution (NBFI) dedicated to financing renewable energy projects, made its mark on the stock markets today, listing at Rs 50 per share, a premium of 56 per cent over its IPO price of Rs 32. The listing was above the market expectations, reflecting the strong fundamentals and growth potential of the company.”
She added that IREDA’s strong financial performance and focus on the burgeoning renewable energy sector make it an attractive investment proposition. The renewable energy sector is poised for significant growth in the coming years, driven by government initiatives and increasing environmental concerns.
“Investors who participated in the IREDA IPO can be pleased with the strong listing gains. The company’s long-term prospects also appear promising, making it a worthwhile investment for those with a long-term investment horizon,” Nyati said.
Prashanth Tapse, senior VP (research), Mehta Equities, said, “IRDEA listing was above street expectations. We believe post listing, there would be decent demand for the shares as it had received overwhelming response from all kinds of investors especially from long term funds.”
He said IREDA gives allotted investors a long-term opportunity to hold and raid the growth in the sector in serves, hence recommending all allotted investors “Hold for long term”.
“Those who failed to get allotments can accumulate on every dip for holding it for healthy long term returns as markets always reward a player who has high visibility and growth potential,” Tapse said.
IREDA IPO, which was open for public subscription between November 21 and November 23, saw a whopping 39 times subscription last week.
This is the first public issue by a public sector enterprise after Life Insurance Corporation’s IPO in May last year. Proceeds from the fresh issue will be used for augmenting IREDA’s capital base to meet its future capital requirements and onward lending.
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