Last Updated:
Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. were trading with gains of over 8 per cent on Thursday after the company said it is mulling to raise funds. A board meeting will be held on August 29 to take up the proposal for approval.
IREDA is considering a fundraise of up to Rs 4,500 crore through QIP or qualified institutional placement, right issue or other means, the company informed the exchanges.
Additionally, IREDA’s wholly-owned subsidiary IREDA Global Green Energy Finance IFSC Limited has received a provisional registration from the International Financial Services Centre Authority (IFSCA) to operate as a finance company in GIFT City. The announcement was made yesterday in the presence of Union Minister Prahlad Joshi and Gujarat Finance Minister Kanubhai Desai.
IREDA Chairman and Managing Director Pradip Kumar Das said the move reflected the company’s commitment to advancing green financing solutions globally. The subsidiary aims to secure competitive funding and foster collaborations with international investors.
This development follows S&P Global Ratings’ recent assignment of a ‘BBB-’ long-term and ‘A-3’ short-term issuer credit rating to IREDA, with a ‘Stable’ outlook. The rating agency noted IREDA’s position as one notch above the starting point for rating financial companies in India, reflecting continued government support.
Technical analyst Prakash Gaba told CNBC-TV18 that IREDA shares may see some short-term pain.
Gaba expected a possible dip in IREDA. He also said that there is strong support on the charts at levels of Rs 180 – Rs 200, which is still a little below where the shares are currently trading.
“We may or may not get a dip, but as per the basic chart structure is positive. It will come down but will see buying at lower levels, but there is some pain in the short-term,” the analyst stated.
In terms of technicals, IREDA is currently trading close to its 20-Day Moving Average (DMA), which is placed at levels of Rs 249.8.
IREDA had made its stock market debut towards the end of 2023, which means that the stock has risen nearly 8 times within eight months of going public.
The stock, despite correcting 5 per cent in the last one month, rose 145 per cent so far this year.
At this level, IREDA commands a market capitalisation of nearly Rs 69,000 crore.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
