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Business News/ Markets / Stock Markets/  IREDA share price tanks 10% after gaining 100% since listing; here's why
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IREDA share price tanks 10% after gaining 100% since listing; here's why

The stock was listed on the Indian exchanges on November 29 at ₹60 apiece, an 87.5% premium over the issue price of ₹32. It continued the same upward trajectory for the next 11 sessions, achieving a record high of ₹123.30 apiece.

The company's total income stood at ₹2,655 crore, ₹2,860 crore, and ₹3,482 crore for the fiscal years FY21, FY22, and FY23, respectively.Premium
The company's total income stood at 2,655 crore, 2,860 crore, and 3,482 crore for the fiscal years FY21, FY22, and FY23, respectively.

After a robust post-listing surge, IREDA shares experienced a 10% decline in today's trading session, reaching 108.30 apiece on the back of profit booking. The stock was listed on the Indian exchanges on November 29 at 60 apiece, an 87.5% premium over the issue price of 32. It continued the same upward trajectory for the next 11 sessions, achieving a record high of 123.30 apiece.

The IPO received robust demand from all sections of investors. It was subscribed to 38.8 times in the three days of bidding (November 21–23).

Taking the stock's previous closing price of 120.30 apiece, the stock gained 100% from its listing price of 60.

Also Read: IREDA share price hits all-time high, up 218% from its issue price

The remarkable rally caught the attention of the National Stock Exchange (NSE), prompting it to seek clarification from the company on December 14. The company on the same day replied that it has no positive information or any other material information to disclose that could impact the trading activity or volume behaviour.

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

On December 08, the company launched a retail division for providing loans under the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.

Also Read: Green energy stocks to profit from the end of the oil age

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").

Among power financing NBFCs, the company has the largest share of credit towards the RE sector other than Power Finance Corporation, which is also present in sectors such as infrastructure, roads, mining, and others, while the company is completely focused on the RE sector.

Also Read: Sensex surging: Will this be the new normal?

The company's total income stood at 2,655 crore, 2,860 crore, and 3,482 crore for the fiscal years FY21, FY22, and FY23, respectively. Correspondingly, it recorded net profit of 347 crore, 634 crore, and 865 crore in the same fiscal years.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

 

 

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Published: 15 Dec 2023, 12:49 PM IST
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