Miniratna PSU Stock Gains Over 100% In Just Two Days Of Stock Market Debut; Do You Own It?

The share price of the Indian Renewable Energy Development Agency (IREDA) extended gains on the second day after its stock market debut on Wednesday. On Thursday, IREDA shares closed 8.83% higher at Rs 65.29 per share on BSE, while on NSE the stock closed 10.17% higher at Rs 66.10 per share.

At today's closing price, the state-owned financial institution has a market capitalization of Rs 17,548.42 crore (full). The IREDA stock has a 52 Wk High and 52 Wk Low of Rs 68.91 and Rs 49.99 respectively. In today's intraday trading the share price of IREDA at one point traded at a new 52 Week High value of 68.91. Meanwhile, on Wednesday, IREDA's share price touched the upper circuit of Rs. 59.99.

At Rs 65.29 per share, the stock price of IREDA has gained 104% compared to its issue price of Rs 32. On Wednesday, IREDA shares closed 87.5% higher at Rs 60 against the IPO price of Rs 32 on NSE. On BSE, the stock closed 87.47% higher from its IPO price at Rs 59.99 on Wednesday.

IREDA's IPO price was fixed between Rs 30-32 apiece with a lot size of 460 shares. The public issue opened for subscription on November 21 and the bidding process concluded on November 23. The state-run PSU player raised a total of Rs 2,150.21 crore via the IPO route, which included a fresh share sale of Rs 1,290.13 crore and an offer-for-sale (OFS) of 26,87,76,471 equity shares.

Ahead of the IPO launch, the company mopped up Rs 643.26 crore from 58 anchor investors including Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Moon Capital Trading, and Copthall Mauritius.

IREDA is a Mini Ratna (Category - I) wholly owned government enterprise that is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA is notified as a "Public Financial Institution" and is registered with the Reserve Bank of India as a systemically important NBFC with Infrastructure Finance Company status.
In H1FY24, IREDA posted a net profit of Rs 579 crore on a total income of Rs 2,320 crore. During this period, the company's net interest income grew 20% YoY to Rs 729 crore.

IREDA is believed to have the best asset quality compared to its peers, with gross NPAs declining to 3.1% in H1FY24 from 5.1% in H1FY23 and net NPAs coming down to 1.7% from 2.7%.