Shares of the Indian Renewable Energy Development Agency (IREDA) rose 10% on Wednesday, marking the sixth consecutive day of gains following a surge that sparked a 20% upper circuit on Tuesday.
As of Wednesday's trading, the stock had tripled from its IPO price of Rs 32, reaching an intraday high of Rs 112. This significant growth came just 10 days after the company went public on November 29.
The IPO of IREDA, the first public sector undertaking (PSU) IPO since LIC in May of the previous year, drew strong investor interest. The issue was approximately 40 times oversubscribed, making it the seventh most subscribed PSU IPO of the decade.
IREDA shares have fallen only twice in ten trading days since its debut on the stock exchange. The rally was maintained with a 20% increase on Monday and another 20% increase on Tuesday. The latest jump has increased IREDA's market value to above 27,300 crore, indicating strong investor confidence in the company's growth prospects.
"We anticipate that the stock will consolidate from current levels, with some minor corrections towards 95-100 levels, which will be good levels for short-term traders to enter the store." Long-term investors, on the other hand, may continue to ride the flow and keep the stock in their portfolio', said Atul Parakh, CEO of Bigul.
Almost 20 crore shares of IREDA changed hands during today's trading session, compared to 35 crore shares on Tuesday and 23 crore shares on Monday, showing increased trading activity and investor interest.
IREDA made headlines on Monday when it announced the opening of its retail branch, which will strategically target programs such as the PM-KUSUM scheme, rooftop solar projects, and other business-to-consumer (B2C) segments with a focus on loan provision.v
