IREDA Shares Touch New High of ₹228.48 on 4th July 2024

Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) have surged to a record high after 4 Months, with the stock price touching ₹228.48 on Thursday. With a Net gain of -0.90% over the previous day’s close of 118 so far in July 3rd 2024.

Heavy Trading Volume Boosts Scrip

The IREDA counter on the BSE saw heavy trading volume in last 4 Days, with over 1.30 crore shares changing hands. This is significantly higher than the two-week average volume of 54.88 lakh shares or Previous week. The turnover on the counter stood at ₹279.05 crore, with the company’s market capitalization (m-cap) reaching ₹57,934.77 crore on Wednesday.

Technical Analysts States Bullish on IREDA

Technical analysts are optimistic about the prospects of IREDA shares. Mitesh Panchal, a Sebi-registered analyst, believes the stock has the potential to hit ₹240-250 levels in the next one week. Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, sees support at ₹200 and resistance at ₹219. He expects the stock to trade between ₹195 and ₹240 in the short term.

Loan Sanctions and Disbursements Drive overall Growth

IREDA has reported a significant increase in loan sanctions and disbursements for the quarter ended June 2024. Loan sanctions rose 382.62% year-on-year to ₹9,136 crore, while disbursements climbed 67.61% to ₹5,320 crore. The company’s outstanding loan book stood at ₹63,150 crore, up 33.77% over the same period last year.

Funds Raised via Bond Issuance

IREDA recently raised ₹1,500 crore through the issuance of bonds. The funds were raised at an annual interest rate of 7.44% for a tenure of 10 years and two months.

What’s Driving the Surge in IREDA Shares?

The surge in IREDA shares can be attributed to a combination of factors, including:

  • Increased loan sanctions and disbursements: IREDA’s impressive performance in the June quarter has boosted investor sentiment.
  • Successful bond issuance: The company’s ability to raise funds at a competitive interest rate has demonstrated its creditworthiness.
  • Inclusion in FTSE All World Index: IREDA’s inclusion in the FTSE All World Index has led to increased inflows from foreign investors.
  • Government support: As a mini Ratna firm under the administrative controls of the Ministry of New and Renewable Energy, IREDA is expected to receive continued government support.