IREDA Shares Soar 13% as Foreign Investors Double Stake
Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. surged as much as 13% on Thursday, reaching a new record high of ₹279. With this move, the market capitalization of IREDA has climbed to ₹75,000 crore.
The stock has posted gains in four of the last five trading sessions. On Thursday, the company disclosed its June quarter shareholding pattern, revealing that foreign portfolio investors have doubled their stake in the renewable energy PSU.
As of June 30, foreign portfolio investors held a 2.7% stake in IREDA, up from 1.36% in the March quarter. However, no notable shareholders have emerged with stakes exceeding 1%.
The number of small shareholders also increased during the April-June period. Shareholders with authorized share capital of less than ₹2 lakh rose to 22.15 lakh from 21.23 lakh in the March quarter.
Conversely, domestic mutual funds have reduced their stakes, opting to book profits as the stock reaches new highs. Mutual funds held a 0.24% stake at the end of June, down from 0.53% at the end of March.
In an interview with CNBC-TV18 in June, IREDA’s management stated that the company has applied to the government for permission to conduct a Follow-on Public Offer (FPO) to raise between ₹4,000 crore and ₹5,000 crore. The management emphasized the need for more equity capital to sustain their growth pace.
IREDA’s shares debuted on the stock market in November last year at ₹32 per share. Since then, the stock has increased more than eightfold from its IPO price, nearing the ₹300 mark.
Currently, the stock is trading in “overbought” territory with a Relative Strength Index (RSI) of 83. An RSI above 70 indicates overbought conditions.
As of Thursday, IREDA shares are trading 14.3% higher at ₹282.7, up 46% so far in July.
Conclusion
IREDA Ltd. has experienced a remarkable surge in its share price, climbing 13% to reach a record high of ₹279 and pushing its market capitalization to ₹75,000 crore. The increase is largely driven by foreign portfolio investors doubling their stakes, now holding 2.7%. While small shareholder numbers have also grown, domestic mutual funds have reduced their stakes to book profits. The company plans a Follow-on Public Offer (FPO) to raise ₹4,000-₹5,000 crore to support further growth. Trading in overbought territory with an RSI of 83, IREDA’s stock has risen significantly, reflecting strong market confidence.
Post Comment