IREDA share price recovers 15% from intraday low; check details

Indian Renewable Energy Development Agency (IREDA) shares: IREDA share price recovered nearly 15% from intraday low levels. At 10:30 IST, IREDA shares were trading at ₹112.60 apiece on BSE. 

IREDA share price tanked over 9% on Monday's early trading session due to profit booking. IREDA share price has been down 18.25% in two trading sessions. IREDA share price opened at ₹101.99 apiece on BSE and touched an intraday low of ₹98.26 and an intraday high of ₹103.80.

According to Arun Kejriwal, Founder at Kejriwal Research and Investment Services, the IREDA share price, after rising from ₹32, which was the issue, to ₹125, needed some correction.

Also Read: IREDA share price Today Live Updates : IREDA Stock Soars on Positive Trading Day

"We also need to understand that there is a worry in the street about FOMO—fear of missing out."So the retail investors kept buying without understanding what the value could be. Correction is more than welcome," said Kejriwal.

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In 11 sessions, IREDA share price, which was listed at ₹50, increased by 124%. IREDA share price made a stellar debut on the bourses on November 29. On NSE and BSE, IREDA share price was listed at ₹50 per share, 56.25% higher than the issue price of ₹32.

Also Read: IREDA share price tanks 10% after gaining 100% since listing; here's why

Indian Renewable Energy Development Agency IPO was subscribed 38.80 times on day 3. IREDA IPO's retail investors portion was subscribed 7.73 times, NII portion was subscribed 24.16 times, and Qualified Institutional Buyers (QIB) portion is booked 104.57 times. Employee portion was subscribed 9.80 times, as per BSE data, on day 3.

IREDA IPO opened for subscription on Tuesday, November 21, and closed on Thursday, November 23. IREDA IPO price band was fixed in the range of ₹30 to ₹32 per equity share of face value of ₹10. IREDA IPO lot size was 460 equity shares and in multiples of 460 equity shares thereafter.

The stock increased by 124% from its listing price of ₹50 to its closing price on Wednesday of ₹112.16 per share. The National Stock Exchange (NSE) was drawn to the impressive rally and on December 14 it asked the company for clarification. The company responded the same day, stating that it did not have any positive information or any other material information to share that would have an effect on volume behaviour or trading activity.

"The volatility in the price and volume in IREDA’s shares is completely market driven," the company said in an exchange filing.

Also Read: IREDA share price makes stellar debut, stock lists at 56.25% premium at ₹50 on NSE

IREDA is an NBFC established in 1987 to provide innovative financing in RE and energy efficiency, conservation, and environmental technologies. It is a wholly owned Government of India (“GoI") enterprise under the administrative control of the Ministry of New and Renewable Energy (the “MNRE").

In September 2023, the company was upgraded from Schedule B to Schedule A in the list of CPSEs by the Department of Public Enterprises (“DPE"). The company was also conferred with Mini Ratna (Category I) status in June 2015 by the DPE, according to the company RHP report.

Also Read: IREDA IPO: From financials to key risks, 10 key points from RHP

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