Explained: Why IREDA shares jumped 6% today
Explained: Why IREDA shares jumped 6% today
Shares of Indian Renewable Energy Development Agency (IREDA) jumped by 6% in early trade on Monday after the green energy company reported a significant rise in loan sanctions and disbursements for the June 2024 quarter.
IREDA's loan sanctions for the June 2024 quarter surged by 382.62% year-on-year (YoY) to Rs 9,136 crore.
This is a massive increase from Rs 1,893 crore in the June 2023 quarter. Additionally, loan disbursements climbed by 67.61% to Rs 5,320 crore, compared to Rs 3,174 crore in the same period last year.
The company's outstanding loan book also saw a substantial rise. It stood at Rs 63,150 crore in the first quarter of this fiscal year, marking a 33.77% increase from Rs 47,207 crore a year ago.
Last week, IREDA successfully raised Rs 1,500 crore through bonds. The bond issue had a base issue of Rs 500 crore and a green shoe option of Rs 1,000 crore.
It was subscribed 2.65 times. The funds were raised at an annual interest rate of 7.44% for a tenure of 10 years and two months.
The positive financial news drove IREDA's stock up by 6% to Rs 202 on the Bombay Stock Exchange (BSE). The market capitalisation of the firm climbed to Rs 52,895 crore. The shares saw a turnover of Rs 28.45 crore, with 14.30 lakh shares changing hands on the BSE.
IREDA's stock reached its all-time high of Rs 215 on February 6, 2024. It had dropped to a 52-week low of Rs 49.99 on November 29, 2023.
The stock was listed at a premium of 56.25% over its IPO issue price of Rs 32 in the same session. It initially listed at Rs 50 last year, making it a multibagger stock.
The relative strength index (RSI) of the stock stands at 57.4. This indicates that the stock is trading neither in the overbought nor the oversold zone. IREDA shares are higher than the 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day moving averages.
IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE).
For over 36 years, IREDA has been promoting, developing, and providing financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects.