This PSU Stock Turns Multibagger After Listing, Doubles Investors’ Money In Three Days

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Curated By: Business Desk

Last Updated: December 02, 2023, 18:27 IST

The IREDA stock was listed on the stock exchanges on November 29.

On the second day of listing, IREDA’s shares doubled the investment compared to its IPO price band of Rs 30 to Rs 32 per share.

The investors who were allotted the shares of the Indian Renewable Energy Development Agency (IREDA) have received a massive return as the PSU stock made a stellar debut in the market on November 29.

The Mini Ratna public sector undertaking was listed on the stock exchanges at a 56% premium to its IPO price on Wednesday. On the second day of listing, IREDA’s shares doubled the investment compared to its IPO price band of

Rs 30 to Rs 32 per share.

Market analysts were bullish on IREDA’s IPO, stating that the government company’s shares would be lucrative for long-term investors.

IREDA Stock Performance

On Friday, December 1, the IREDA stock price reached a high of Rs 68.40 apiece on BSE in intraday trading. On December 1, the IREDA stock finally closed at Rs 62.70 apiece on BSE, declining by 3.98% or 2.60 points. The company’s current market capitalisation stands at Rs 16,870 crore.

Earlier, on November 30, the share had closed at Rs 65.30 apiece after reaching an all-time high of Rs 68.90 apiece on BSE during the intra-day session.

The IPO opened for subscription on November 21 and closed on November 23. The IPO witnessed a subscription of 38.8 times of the issue size. IREDA is a Mini Ratna (Category-I) government enterprise working under the Ministry of New and Renewable Energy.

After a robust listing, analysts recommended holding IREDA stock for the medium to long term, citing its strong fundamentals and growth potential in the renewable energy sector. Analysts also highlighted the company’s financial strength and the growth prospects in the Indian renewable energy sector as reasons to include IREDA in investment portfolios.

According to a report by CNBC TV18 Hindi, Prashant Tapse, Senior Vice President (Research) at Mehta Equities, suggests that investors willing to take some risk can hold IREDA for an extended period. For those investors averse to risk, they can consider booking profits after the stock price doubles. He noted that the growth in the Indian renewable energy sector is expected to benefit IREDA. In addition, Swastika Investmart’s Shivani Nyati also shared a positive view of the IREDA stock, citing the company’s strong financial position.

Analysts from StoxBox expressed positive views on IREDA’s stock, citing the company’s strong financial position and the rapid development of the renewable energy sector. The conclusion is that holding IREDA shares could prove profitable in the coming years.

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