IREDA IPO debuts on NSE with a 56.25% premium, triggering a 20% upper circuit

Indian Renewable Energy Development Agency Ltd (IREDA) had a very robust listing on 29th November 2023, listing at a smart premium of 56.25% on the NSE and on top of that managed to hit the 20% upper circuit also. The stock of IREDA closed the day at ₹60 per share, a premium of 20% over the listing price of ₹50 per share and a premium of 87.5% over the IPO price of ₹32 per share. Certainly, the IPO allottees of IREDA would be laughing all the way to the bank at the close of the first day of listing of the stock. The pattern was exactly similar on the BSE also. On the Bombay Stock Exchange (BSE), the stock of IREDA opened at ₹50 per share, a premium of 56.25% over the IPO issue price of ₹32 per share. For the day, the stock closed on the BSE at ₹59.99, an overall gain of 19.98% over the IPO listing price of ₹50 per share and a premium of 87.47% over the issue price of ₹32 per share.  On the NSE and the BSE, the stock of Indian Renewable Energy Development Agency Ltd (IREDA) closed the listing day at the upper circuit, or the maximum permissible limit.

While the closing price of Indian Renewable Energy Development Agency Ltd (IREDA) on 29th November 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed comfortably above the listing price on the BSE and also on the NSE. For the day, the Nifty closed 207 points higher while the Sensex closed a full 728 points higher as the Nifty closed above the psychological 20,000 mark on hopes that the growth momentum will sustain in India. Both the Nifty and the Sensex showed sterling gains on Wednesday, gaining more than 1.1% in a single day of trade. That rubbed off on the stock price performance of Indian Renewable Energy Development Agency Ltd (IREDA).

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 38.80X  overall and QIB subscription was at 104.57X. In addition, the retail portion had got subscribed 7.73X in the IPO while the HNI / NII portion also got a healthy subscription of 24.16X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed around 20% higher over the issue price of the IPO, hitting the upper circuit of 20% on both the stock exchanges.

The IPO price was fixed at the upper end of the band at ₹32 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹30 to ₹32 per share. On 29th November 2023, the stock of Indian Renewable Energy Development Agency Ltd (IREDA) listed on the NSE at a price of ₹50 per share, a strong premium of 56.25% over the IPO issue price of ₹32 per share. On the BSE also, the stock listed at ₹50, a premium of 56.25% over the IPO issue price of ₹32 per share. Here is the Indian Renewable Energy Development Agency Ltd (IREDA) listing story on 29th November 2023.

How the stock of Indian Renewable Energy Development Agency Ltd (IREDA) closed on both exchanges

On the NSE, Indian Renewable Energy Development Agency Ltd (IREDA) closed on 29th November 2023 at a price of ₹60 per share. That is a first day closing premium of 87.50% on the issue price of ₹32 and also a premium of 20% on the listing price of ₹50 per share. In fact, the listing price turned out to be exactly the low price of the day on the NSE and the stock traded for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹59.99. That represents a first day closing premium of 87.47% above the IPO issue price and also a premium of 19.98% above the listing price on the BSE at ₹50 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, never going below the listing price, and eventually closing at the upper circuit of the day. In fact, the opening price turned out to be the low price of the day on the BSE as well as on the NSE. The high price of the day on both the stock exchanges on 29th November 2023 was the maximum  upper circuit price, which also happened to be the closing price of the stock on Wednesday. In fact, on the NSE, the stock closed with open buying quantity of 89,04,533 shares, showing a lot of pent up demand for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Indian Renewable Energy Development Agency Ltd (IREDA) on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 29th November 2023. On Day-1 of listing, Indian Renewable Energy Development Agency Ltd (IREDA) touched a high of ₹60 per share on the NSE and a low of ₹50 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of Indian Renewable Energy Development Agency Ltd (IREDA) closed exactly at the high price of the day, which is also the upper circuit for the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Indian Renewable Energy Development Agency Ltd (IREDA) had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the NSE, the upper circuit price was ₹60 per share while the lower circuit price was ₹40 per share. During the day, the high price of the day at ₹60 was exactly the upper band price while the low price of the day at ₹50 per share was well above the lower band price for the day at ₹40 per share. On Day-1 of listing, the Indian Renewable Energy Development Agency Ltd (IREDA) stock traded a total of 5,798.11 lakh shares on NSE amounting to value of ₹3,183.16 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders of 89,04,533 shares on the NSE.

Price volume story of Indian Renewable Energy Development Agency Ltd (IREDA) on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (NSE) on 29th November 2023. On Day-1 of listing, Indian Renewable Energy Development Agency Ltd (IREDA) touched a high of ₹59.99 per share on the BSE and a low of ₹49.99 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of Indian Renewable Energy Development Agency Ltd (IREDA) closed exactly at the high price of the day, which is also the upper circuit for the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Indian Renewable Energy Development Agency Ltd (IREDA) had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹59.99 per share while the lower circuit price was ₹49.99 per share. During the day, the high price of the day at ₹59.99 per share was exactly the upper band price while the low price of the day at ₹49.99 per share was well above the lower band price for the day at ₹40 per share. On Day-1 of listing, the Indian Renewable Energy Development Agency Ltd (IREDA) stock traded a total of 381.55 lakh shares on BSE amounting to value of ₹209.97 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with substantial pending buy orders on the BSE also.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with very little hint of any profit booking even by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 5,798.11 lakh shares traded during the first day of trading, the deliverable quantity represented 2,650.54 lakh shares or a deliverable percentage of 45.71% on the NSE, which is definitely lower than the routine listing day median.

That shows a lot of speculative trading action in the counter on the first day of trading. Even on the BSE, out of the total 381.55 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 166.56 lakh shares representing total deliverable percentage of 43.65%, which is slightly lower than the NSE, but substantially lower than the typical listing day median. On the BSE also, there was a lot of speculative trading volumes visible in the counter. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, Indian Renewable Energy Development Agency Ltd (IREDA) had a market capitalization of ₹16,123.90 crore with free-float market cap of ₹2,902.30 crore. Indian Renewable Energy Development Agency Ltd (IREDA) has issued capital of 268.78 crore shares with a par value of ₹10 per share.