IREDA Stock Records Second Consecutive Day of Decline, Drops 8%; Here’s the Explanation

IREDA shares experienced a dip of 7.78%, settling at ₹101.30 per share in today’s trading session, marking the stock’s second consecutive day of decline. The downward trend commenced after the stock reached an all-time high of ₹123.20 per share on December 14, resulting in a 16.70% loss in value since then. Investors are opting to book profits following a significant surge in shares post-listing.

Making its debut on Indian exchanges on November 29 at ₹60 per share, compared to its issue price of ₹32, the stock witnessed a remarkable 105.33% surge in less than two weeks post-listing. With the current market price at ₹102 per share, the stock is trading 219% higher than its IPO price.

The IPO received substantial demand across investor segments, boasting an impressive subscription rate of 38.8 times during the three-day bidding window from November 21 to 23.

IREDA (Indian Renewable Energy Development Agency) is an NBFC established in 1987, focusing on providing innovative financing in renewable energy (RE) and energy efficiency, conservation, and environmental technologies. As a wholly-owned Government of India enterprise under the Ministry of New and Renewable Energy (MNRE), it holds a significant share of credit towards the RE sector among power financing NBFCs.

On December 08, the company launched a retail division to offer loans under the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.

In comparison, competitors such as Power Finance Corporation and Rural Electrification Corporation (REC) have also achieved multibagger returns this year. Power Finance Corporation shares surged 246% this year, while REC shares zoomed 256%, attributed to increased power demand amid heightened economic activities, benefiting power sector financing companies.