IREDA share price rose over 19.97% on Monday’s trading session to ₹85 per share on NSE.

In the business session of the Indian Renewable Energy Development Agency (IREDA) on Monday, shares surged by more than 19.97% on the National Stock Exchange (NSE), reaching ₹85 per share. This remarkable jump saw significant trading activity with a notable interest from specific buyers in the stock. Over the past two trading days, IREDA’s shares have witnessed a substantial increase of 32%.

The stock experienced sufficient commercial activity today, with a total trading volume of 210.51 million equity shares. There are outstanding purchase orders for a total of 18.31 million equity shares on both the NSE and BSE. Currently, the share price of IREDA has shown a significant growth of 166%, surpassing its debut price of ₹32 per share since its market inception on November 29.

Following its impressive performance in May 2022, becoming the first public sector company in over a year after the first quarter results of the Life Insurance Corporation of India, IREDA made a noteworthy entry into the capital market. The majority of IREDA’s asset portfolio includes solar energy (30%), followed by wind energy (20.9%), state utilities (19.2%), and hydropower (11.5%).

IREDA is India’s only Non-Banking Financial Company (NBFC) dedicated to Renewable Energy (RE). As the country’s largest pure-play green financing NBFC, IREDA holds a unique position, aligning itself well with select well-equipped organizations to take advantage of ample expansion in the renewable energy sector.

After the market closed on Friday, in a regulatory filing, IREDA announced the establishment of its retail segment. This strategic move is designed to strengthen the company’s focus on providing loans to beneficiaries in sectors such as the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, rooftop solar projects, and Business-to-Consumer (B2C) needs.

Apart from participating in an IPO for potential listing benefits, analysts suggest adopting a long-term investment perspective to enhance the focus on the renewable energy sector, citing the government’s commitment to the first mover advantage. Despite limited historical charting, some investors express optimism, foreseeing the stock reaching close to ₹100 in the near future.

Nirmal Bang recommends that sustained growth in its loan portfolio can be secured through diversification and expansion into emerging green technologies. These technologies include green hydrogen, pumped hydro storage power plants, battery storage cost curve, and the development of green energy corridors.

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