Blockbuster Listing | IREDA enforced an upper circuit of Rs 60 because to high demand

 Blockbuster Listing | IREDA enforced an upper circuit of Rs 60 because to high demand

Blockbuster Listing | IREDA enforced an upper circuit of Rs 60 because to high demand

Market value of the government-owned corporation almost doubles to Rs 16,124 crore after a successful start.

Due to favorable market circumstances, robust IPO registration numbers, and anticipated expansion in the renewable energy industry, the Indian Renewable Energy Development Agency (IREDA) saw a 97% increase in value on its market debut on November 29.

Following its successful launch, the government-owned company's market capitalization almost quadrupled to Rs 16,124 crore.

The stock, which was issued for Rs 32, floated on the National Stock Exchange for a price of Rs 50, which was 56% more than anticipated. Analysts anticipated that IREDA would list between 30 and 35 percent over the issue price.

As the day went on, the stock hit Rs 60 in the afternoon, which was 20% more than both its upper circuit limit and listing price.

The BSE lists IREDA in the 'B' group category. Its upper and lower circuit limitations are set at 20% of the opening price.

A total of 57.97 crore shares changed hands on the NSE and 3.81 crore shares on the BSE during the lively trading of the stock.

Head of wealth at Swastika Investmart Shivani Nyati said, "The registration beat market expectations, confirming the company's strong fundamentals and growth potential."

IREDA presents an appealing investment opportunity due to its robust financial performance and emphasis on the expanding renewable energy industry, he said. The renewable energy industry is expected to increase significantly in the next years as a result of government efforts and rising environmental concerns.

Having said that, the company's long-term prospects are bright, which makes it a good investment for those with a lengthy time horizon.

The company experienced the greatest listing gain following SBFC Finance, which closed with a 61.77 percent rally on August 16, the day of the debut. Following IdeaForge Technology, Utkarsh Small Finance Bank, Netweb Technologies, SBFC Finance, as well as Cyient DLM, the company is the fifth projected to rise in 2023.

Research Analyst and Senior VP Research at Mehta Equities, Prashant Tapase, said that IREDA may serve as a stand-in for expansion in the renewable energy market in India. He suggested delaying the implementation of IREDA.

Financial support is given to energy efficiency and conservation initiatives, as well as new and renewable energy projects, by Mini Ratna (Category I) Government Enterprises.

Through the IPO, which was subscribed 38.8 times between November 21 and 23, the business raised Rs 2,150 crore.

The business intends to finance further lending and satisfy capital needs with the Rs 1,290 crore issuance proceeds. Selling a portion of its ownership in the firm brought in Rs 860 crore for the government.