IREDA: A Multi-Bagger Stock in the Renewable Energy Sector
The Renewable Energy sector is witnessing a remarkable surge, and one of the most notable players, the Indian Renewable Energy Development Agency (IREDA), is currently trading with impressive gains. This surge is driven by significant news that has caught the attention of investors. From being a penny stock to a multi-bagger, IREDA has transformed the fortunes of many investors, yielding over 325% returns in just nine months. The company has recently announced a board meeting scheduled for August 29, 2024, where they plan to discuss raising ₹4,500 crores through the issuance of shares.
Upcoming Board Meeting on August 29
In accordance with the regulatory filing made to the Bombay Stock Exchange (BSE), IREDA has informed that its Board of Directors will convene on August 29, 2024. During this meeting, they will deliberate on the approval for raising ₹4,500 crores by issuing shares. The funds are expected to be raised through various mechanisms such as Follow-on Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, preferential issues, or other methods, pending necessary legal and governmental approvals. Despite a 23% decline from its record high, brokerage firm ICICI Securities has given it a ‘Buy’ rating with a target price of ₹330.
IPO Details and Market Performance
IREDA made a significant entry into the market in November 2023 with an Initial Public Offering (IPO) priced at ₹32 per share. Since then, the stock has skyrocketed, offering shareholders returns nearing ten-fold, reaching around ₹310 at its peak. Currently, the stock is trading at approximately ₹239, having provided investors with over 100% returns in the current year alone.
Company Profile and Impact on Renewable Energy
In the context of India’s increasing electricity demand and the government’s commitment to renewable energy, IREDA plays a pivotal role in financing solar power and wind energy projects. The Indian government aims to enhance the renewable energy capacity to 500 GW by FY 2029-30, necessitating an investment of around ₹24.43 lakh crores, where IREDA is expected to play a significant role. Additionally, the government’s rooftop solar program is likely to provide further benefits to IREDA.
Market Outlook
With a strong focus from the government on renewable energy and several initiatives underway, IREDA stands to gain immensely as the demand for clean energy continues to rise. Investors are closely watching developments around the upcoming board meeting, as the decisions made could influence the stock’s performance and the overall growth of renewable energy financing in the country.
Investment Disclaimer
Disclaimer: The information provided here is for informational purposes only. Investment in the market is subject to risks. As an investor, always seek expert advice before making any financial decisions. TV9 Bharatvarsh Digital does not provide investment advice.
