Multibagger: This PSU stock gained 430% from IPO price in less than 2 months; details here
In an astonishing feat, the recently listed PSU stock Indian Renewable Energy Development Agency (IREDA), has not only made a significant mark on the market but has also rewarded early investors with an extraordinary return in less than two months since its IPO.
Retail investors who secured allotment in the initial public offering have seen wealth grow massively, making IREDA a standout performer in a short span of time.
Shares of IREDA, India’s largest pure-play green financing NBFC, made their debut on Indian exchanges on November 29, 2023, listing at ₹60 apiece, an 87.5% premium compared to the issue price of ₹32. Since its listing, the stock has maintained a robust upward trajectory, never dipping below its listing price.
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In today’s trading session, the stock hit a record high of ₹169.80 apiece, marking its fifth consecutive day of gains. With the current market price of ₹169.80, the stock has surged by a stellar 430.6% from its IPO price and 183% from its listing price.
Looking at monthly performance, the stock advanced 57.4% in December, and in the current month so far, it is up by 65%. With its strong performance, the stock secured the top position in the S&P BSE IPO index.
In terms of financials, the company posted a 67% jump in its net profit to ₹335.54 crore in Q3FY24, driven by consistent growth in the loan book and a significant reduction in net non-performing assets (NPAs) to 1.52% in Q3 FY24 from 2.03% in Q3 FY23.
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The company’s revenue from operations surged to ₹1,253.19 crore in the third quarter of the current fiscal year from ₹868.97 crore in Q3 FY23.
The company’s loan book improved by 33% to ₹50,579.67 crore from ₹37,887.69 crore in the same quarter a year ago. Its net worth also rose by 45.49% to ₹8,134.56 crore from ₹5,591 crore in the year-ago period.
IREDA provides innovative financing in RE and energy efficiency, conservation, and environmental technologies. It is a wholly owned Government of India (“GoI”) enterprise under the administrative control of the Ministry of New and Renewable Energy (the “MNRE”).
Among power financing NBFCs, the company has the largest share of credit towards the RE sector other than Power Finance Corporation, which is also present in sectors such as infrastructure, roads, mining, and others, while the company is completely focused on the RE sector.
Also Read: Pradhanmantri Suryoday Yojana: 1 crore homes to have solar panels, says PM Modi
The outlook for India’s RE sector is positive, with major policy announcements & ambitious targets. India has set forth an ambitious roadmap for its energy future, aiming to elevate its non-fossil energy capacity to an impressive 500 GW by 2030.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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Published: 25 Jan 2024, 01:43 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.