IREDA shares rise 7% to touch new record high; what's behind the rally?

Shares of IREDA surged nearly 7 percent to reach an all-time high of ₹224.6 on the National Stock Exchange (NSE) amid high trading volumes, on July 3. A total of 1.37 million shares were traded in a bunched transaction, indicating significant investor interest and activity in the stock.

In the previous session, 5 million shares of IREDA were exchanged in a block deal, amounting to 0.16 percent of the total equity. The block deal's total transaction value was reported to be ₹100 crore.

Last week, another significant transaction occurred in IREDA, with 8.92 million shares, or 0.35 percent of the total equity, worth ₹189.4 crore changing hands. The transaction took place at an average price of ₹213 per share.

Recently, IREDA CMD Pradip Kumar Das announced that the company has requested government approval to carry out a Follow-on Public Offer (FPO) to secure additional equity infusion in light of its rapid growth.

Last month, IREDA successfully raised ₹1,500 crore through a bond issuance, receiving an overwhelming response from investors and being oversubscribed 2.65 times.

This capital will enable the company to further support the financing of green energy projects, contributing to India's goal of achieving a 500 GW non-fossil fuel installed capacity target by 2030, IREDA stated.

IREDA is a non-deposit-taking non-banking financial company focused on financing the renewable energy sector. It promotes, develops, and provides financial assistance for projects related to new and renewable energy sources, as well as energy efficiency and conservation.

So far this year, IREDA stock has surged by 107.50 percent, more than doubling investors' money. Currently, this multibagger PSU stock is trading 581 percent above its issue price.

The company went public in November last year, offering shares in its IPO at ₹32 each. The stock had an impressive debut, listing at a 56.25 percent premium over the IPO issue price.