IREDA Rockets to 52-Week High with 218% Surge from IPO: Buy, Sell, or Hold? Unveiling the Powerhouse's Rapid Ascent and Green Energy Dominance!

 IREDA Achieves 52-Week High, Records 218% Surge from IPO Price; Evaluate Buy, Sell, or Hold Options?

IREDA's share price on NSE and BSE reached a new 52-week high on December 12, signaling a robust performance. The stock, which debuted at Rs 32 in its recent IPO, has tripled its value, reaching an intraday high of Rs 102.02.

Notably, this surge occurred within just ten days since the stock's initial listing on November 29, where it concluded 87.5% higher than its issue price. IREDA's IPO marked a significant milestone as the first PSU IPO since LIC's in May of the previous year, witnessing nearly 40 times oversubscription, ranking as the seventh most subscribed PSU IPO of the decade.

Despite only ten days of trading since its listing, IREDA shares have experienced declines only twice. The stock closed 10% higher on Friday, followed by a 20% surge on Monday. With the latest surge on Tuesday, IREDA's market capitalization surpassed Rs 25,000 crore.

During Tuesday's trading session, a notable 23 crore shares of IREDA exchanged hands, a slight increase from 21 crore shares on Monday and 26 crore shares on Friday.

Shortly after the market opened, IREDA's retail division swiftly approved its first loan of Rs 58 crore under the KUSUM-B scheme.

As the first public sector company to enter the capital market in over a year, IREDA distinguishes itself with a diverse asset book, primarily dominated by solar energy (30%), followed by wind power (20.9%), state utilities (19.2%), and hydropower (11.5%).

According to Nirmal Bang, the company's diversification and expansion into emerging green technologies, such as green hydrogen, pumped hydro storage power plants, battery storage value chain, and green energy corridors, offer potential for long-term sustainability and high growth in its loan book.

IREDA's financial performance is notable, recording a 58% CAGR growth in net profit from FY21 to FY23. The Capital-to-Risk Weighted Asset Ratio (CRAR) stood at 21.22% as of March 31, 2022, 18.82% as of March 31, 2023, and 20.92% as of September 30, 2023.