IREDA, a non-banking financial company specializing in power financing, saw its shares continue their downward trend, dropping by 4.15% to reach ₹146.55 per share during today’s intraday trading session. This decline follows a 5% decrease in the previous session.
After hitting a record peak, the stock has entered a consistent downward trajectory, continually establishing new intraday lows each day. On February 06, it reached an all-time high of ₹214.80 per share. However, profit-taking by investors has resulted in a correction of 32% since that pinnacle.
Debuting on Indian exchanges on November 29 at ₹60 apiece, compared to its issue price of ₹32, the stock saw an impressive surge of 105.33% in less than two weeks post-listing. Despite the recent adjustment, the stock still stands 358% above its IPO price of ₹32.
According to Rajesh Bhosale, Technical Analyst at Angel One, “The stock is currently exhibiting bearish momentum, with the next significant level expected around ₹130. This level represents a key retracement level from the initial rally and coincides with the 89-day exponential moving average. A breach below this level could indicate further weakness in the stock.”
“On the other hand, any short-term rebound may attract latecomers who entered at higher levels to exit their long positions. In this case, immediate resistance is anticipated in the range of ₹165–175,” he added.
Recent developments indicate that IREDA and Punjab National Bank have collaborated by signing a Memorandum of Understanding (MoU). This partnership aims to drive forward renewable energy initiatives throughout the country.
The Memorandum of Understanding (MoU) includes several provisions focused on bolstering support for renewable energy projects. These provisions encompass joint lending, loan syndication, and underwriting. Additionally, the agreement entails the management of Trust and Retention Account (TRA) for IREDA borrowers, as well as efforts to secure competitive terms of sanction, including pricing on IREDA borrowings.
Furthermore, the collaboration allows both IREDA and Punjab National Bank to invest in bonds issued by either organization. These details were disclosed in the company’s exchange filing dated February 19.
This collaboration underscores IREDA’s commitment to forging successful partnerships with prominent financial institutions. In addition to Punjab National Bank, IREDA has established fruitful collaborations with other leading organizations such as Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank.
IREDA, or the Indian Renewable Energy Development Agency, operates as a Non-Banking Financial Company (NBFC) established in 1987. It specializes in providing innovative financing solutions for renewable energy projects and initiatives related to energy efficiency, conservation, and environmental technologies. As a wholly owned enterprise of the Government of India, IREDA operates under the administrative control of the Ministry of New and Renewable Energy (MNRE).
IREDA stands out among power financing NBFCs for its substantial credit share dedicated to the renewable energy (RE) sector, trailing only Power Finance Corporation in this regard. Unlike Power Finance Corporation, which diversifies its investments across sectors like infrastructure, roads, and mining, IREDA maintains a singular focus on the RE sector.
In the recently concluded December quarter (Q3FY24), IREDA demonstrated strong financial performance. The company achieved a noteworthy 67.15% year-on-year increase in net profit, amounting to ₹335.54 crore. Moreover, its revenue from operations soared by 44.22% year-on-year, reaching ₹1,252.85 crore compared to ₹868.67 crore in the same quarter of the previous fiscal year.
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