Miniratna IPO Stock Gives 220% Returns In 10 Days, Turns Rs 1 Lakh To Rs 3.2 Lakh; IREDA Crosses Rs 100; Why?

It has only been 10 days since the government-backed Mini Ratna company, the Indian Renewable Energy Development Agency (IREDA) debuted on stock exchanges. But the stock has already given extraordinary returns. IREDA shares are currently on a winning streak for the fifth consecutive day. And on Tuesday, bulls turbocharged in IREDA took the stock to sky-high levels and crossed the Rs 100 mark. IREDA shares have been hitting back-to-back upper circuits and new 52-week highs.

On December 12th, at the time of writing, IREDA stock traded at Rs 99.73 apiece, up by 17.30%. In the early trade, the stock touched a new 52-week high of Rs 102.02 apiece, which was also its 20% upper circuit. The company's market cap is at Rs 26,805.08 crore.

On the previous day, IREDA shares touched a 20% upper circuit of Rs 85.02 apiece. Last week, the stock was trading on a bullish tone from December 6th to 8th.

That being said, IREDA shares have zoomed by at least 61.83% since December 6th. The stock did see few corrections however they were momentary. In 10 days of its listing, the only time IREDA shares were in red was on December 1st and 5th and that is due to investors booking profits in the stock's stellar upside.

IREDA listed on November 29th at a premium of 56% to Rs 50 per share against its IPO issue price of Rs 32 per share. The energy company was listed as the first PSU IPO in the primary market this year. IREDA IPO opened on November 21st and closed on November 23rd. The public offer oversubscribed by 38.80 times.

Compared to its issue price, IREDA shares are multi-bagger in 10 days and have given a whopping 218.75% returns to their investors. For instance, if you bought IREDA IPO shares worth Rs 1 lakh, then since its listing, the stock has turned your investment value to a corpus of nearly Rs 3.19 lakh.

Why IREDA shares are rallying?

IREDA shares entered into a sharp bullish tone after it announced it launched a retail division, which became operational on December 5th. IREDA's Chairman & Managing Director, Pradip Kumar Das said that this strategic initiative is geared towards enhancing emphasis on providing loans to borrowers in the PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumer (B2C) sectors.

Notably, shortly after opening, IREDA's Retail division quickly sanctioned its first loan amounting to Rs. 58 crores under KUSUM-B, underscoring IREDA's dedication to emerging as the preferred lender in new segments, mirroring its success in other renewable energy sectors.

Also, IREDA's CMD proposed a significant stride towards sustainable investing by suggesting a 1-2% Assets Under Management (AUM) allocation for domestic pension and insurance funds into Renewable Energy (RE) bonds. This strategic move aims to deepen bond markets, fostering increased global and local investments.

In the panel discussion on "Scaling Up Climate Finance to Meet India's Energy Transition Goals," CMD, IREDA, emphasized the necessity of establishing a comprehensive green taxonomy covering the entire spectrum of Renewable Energy and green technology-based investments. This, he noted, would enhance transparency in Renewable Energy sector issuances, attracting investors with a commitment to sustainability.

He also underscored the significance of finding and financing low-emission solutions to meet the rising energy demand. Recognizing the evolving green energy landscape, Das emphasized the need for unique solutions across both traditional new and emerging sectors.

IREDA is committed to maintaining its position as a leading organisation to provide innovative financing in Renewable Energy and energy Efficiency/Conservation and Environmental Technologies through efficient systems & processes for providing total satisfaction and transparency to its customers.