IREDA trumps Street expectations with a robust debut. Is it a good long-term bet?
IREDA at the bourses was better than Street expectations with a robust 56% over the issue price. This reflects investor sentiment about the strong fundamentals and growth potential of the company.
Post the listing, the stock rallied a further 18% and is currently trading at Rs 59.19 on BSE, up 85% over the IPO price of Rs 32.
Despite solid listing gains, analysts are quite bullish on the stock from a long-term perspective.
With India's ambitious renewable energy goals, they believe IREDA is well positioned to benefit from the opportunities in this space.
The renewable energy sector is poised for significant growth in the coming years, driven by government initiatives and increasing environmental concerns.
«IREDA's strong financial performance and focus on the burgeoning renewable energy sector make it an attractive investment proposition,» said Shivani Nyati, Head of Wealth, Swastika Investmart.
«The company's long-term prospects also appear promising, making it a worthwhile investment for those with a long-term investment horizon,» Nyati added.
The IPO received an overwhelming response, oversubscribed by 38.8 times.
The proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
IREDA has an impressive track record spanning over 36 years in the field of fostering and providing financial support for fresh and sustainable energy (RE) projects, as well as energy efficiency and conservation (EEC) initiatives.
The company is India's largest dedicated green financing non-banking financial company (NBFC).
As of June, 2023, its portfolio of outstanding term loans stood at Rs 47,206 crore, reflecting its diverse investment ventures. The company
