Regarding press reports mentioning a follow-on public offering, or FPO, the government-run Indian Renewable Energy Development Agency Ltd. (IREDA) has provided clarity.
"In this respect, this is to advise you that this information appears to be based on a recent conversation that took place at the company's registered office in New Delhi between Pradip Kumar Das, CMD, IREDA, and journalists. During this conversation, a general talk about the industry and the company's future was held. Das recently expressed his opinion that IREDA may develop Perpetual Debt Instruments (PDI)/FPO in the future, taking into account the needs of the business, in light of the financing requirements for the renewable energy industry "the state-owned company stated.
"However, we would like to clarify that the company has not made any decision regarding FPO. The company will take up the matter with the Board of directors and the government at the appropriate time. The company states that the reported information in media is not correct," it said.
Regarding individual stocks, IREDA increased by 5.15% and reached a peak of Rs 193 during Wednesday's trading.
On November 29 of last year, the lender for renewable energy had a spectacular debut on the public market. Rs 32 was the price of the company's initial public offering (IPO).
Since its launch last year, the multibagger PSU stock has increased by more than 200%.
Recently, IREDA established a subsidiary at GIFT City, Gujarat's International Financial Services Centre (IFSC). It had been given "Navratna" status by the Department of Public Enterprises before this.
Choice Equity Broking's analysts have recommended buying the counter with a target price of Rs 203.
"IREDA presents a promising buying opportunity for those targeting a Rs 203 price objective, contingent upon implementing prudent risk management measures," the analysts stated.
"It is advisable to set a stop loss at Rs 170 to safeguard the investment against unforeseen market reversals in order to effectively manage risk." The local brokerage continued, "A prudent strategy entails looking for opportunities to purchase during market dips at levels around Rs 177."
The Ministry of New and Renewable Energy has administrative jurisdiction over the company IREDA. From project idea to project completion, the organization provides a wide range of financial solutions (both fund- and non-fund-based) and associated services for renewable energy projects and related operations including equipment production and transmission.
