IREDA Stock Price Climbs 6% to Record High Post Major Deal, YTD Returns Double Investors' Money

Shares of IREDA surged nearly 6% on July 3, reaching an all-time high of ₹218.85 on the National Stock Exchange (NSE) amid high volumes. Approximately 1.37 million shares of the company were traded in a bunched transaction, indicating significant investor interest and activity in the stock.

In the previous session, 50 lakh IREDA share price were traded in a block deal, amounting to 0.16% of the total equity. The total transaction value of the block deal was reported to be ₹100 crore. Another block trade occurred in IREDA last week, involving 89.2 lakh shares, or 0.35% of the total equity, worth ₹189.4 crore. The transaction was executed at an average price of ₹213 per share.  

Recently, IREDA CMD Pradip Kumar Das stated that the company has requested government approval to carry out a Follow-on Public Offer (FPO). This move is necessary to secure further equity infusion to support the company's rapid growth.

In an interview with CNBC TV18, Pradip Kumar Das stated that through the FPO, IREDA aims to raise between ₹4,000 crore to ₹5,000 crore. He also mentioned that IREDA has requested the Finance Ministry to include the company under Section 54EC of the Income Tax Act, which would help reduce borrowing costs.

Last month, IREDA successfully raised ₹1,500 crore through the issuance of bonds. The offering received an overwhelming response from investors, being oversubscribed by 2.65 times.

IREDA stated that this capital raising will enable the company to further bolster its efforts in financing green energy projects, thereby contributing to India's goal of achieving a 500 GW non-fossil fuel installed capacity target by 2030.

IREDA is a non-deposit-taking non-banking financial company focused on financing the renewable energy sector. It is involved in promoting, developing, and providing financial assistance for projects related to new and renewable sources of energy, as well as energy efficiency and conservation.

The company went public in November last year, offering shares in its IPO at ₹32 apiece. The stock had a stellar debut, listing at a premium of 56.25% over the IPO issue price.

So far this year, IREDA stock has surged by 107.50%, more than doubling investors' money. Currently, this multibagger PSU stock is trading 581% above its issue price.