Explained — Why shares of IREDA surged over 6% in the final minutes of trade

Explained — Why shares of IREDA surged over 6% in the final minutes of trade

Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) recovered over 6% from the lows of the day towards the final minutes of trade after a block deal that took place in the stock.

As many as 50 lakh shares of IREDA changed hands in the block deal. The number of shares that changed hands amounted to 0.16% of the total equity. The total transaction value of the block deal is said to be ₹100 crore.

Buyers and sellers in the transaction are yet to be determined officially.

In an interaction with CNBC-TV18 on Monday, IREDA CMD Pradip Kumar Das said that the company has requested the government to allow it to carry out an Follow-on Public Offer (FPO) as it will need further equity infusion considering the pace at which it is growing.

Through the FPO, IREDA seeks to raise between ₹4,000 crore to ₹5,000 crore.

Das also mentioned that IREDA has also placed a request with the Finance Ministry to be included under Section 54EC of the Income Tax Act, which will help the company reduce borrowing costs.

IREDA had gone public in November last year, selling shares in its Initial Public Offer at ₹32 apiece.

At the end of the March quarter, the government held a 75% stake in IREDA.

Shares of IREDA ended 6.6% higher on Friday at ₹209, which is now within touching distance of its all-time high of ₹214, which it had hit within a few days of listing in November last year.