Shares of Indian Renewable Energy Development Agency Ltd (IREDA) are in the headlines today after the NSE removed the renewable energy company from many important indices due to the firm's noncompliance with SEBI portfolio concentration guidelines.
“As IREDA breached one of the requirements of SEBI Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds related to impact cost, the committee has decided to revoke its earlier decision to include IREDA announced on February 28, 2024,” said the NSE in a press release
IREDA will no longer be included in the Nifty 500, Nifty Midcap 150, Nifty Midcap 100, Nifty 200, Nifty LargeMidcap 250, Nifty MidSmallcap 400, Nifty Total Market, or Nifty500 Multicap 50:25:25 indices.
The inclusion was to go into effect on March 28, 2024.
V-Guard Industries, which was excluded to make way for IREDA stock, will now remain in the Nifty 500, Nifty Smallcap 250, and Nifty MidSmallcap 400.
The multibagger stock closed 2.82% lower at Rs 129.35 on Tuesday on the BSE. The firm's market capitalization declined to Rs 34,766 crore. On the BSE, IREDA had 8.65 lakh shares change hands, resulting in a turnover of Rs 11.29 crore.
On February 6, this year, the renewable energy stock reached a record high of Rs 215. Compared to its IPO issue price of Rs 32, the stock has increased 304% to date.
In terms of technicals, the stock's relative strength index (RSI) is 37.9, indicating that it is not overbought or oversold. On November 29, 2023, the IREDA stock began trading at Rs 50. The listing represented a 56.25% premium over the IPO issue price of Rs 32.
The IPO ran from November 21 to 23, 2023. The price band for IREDA's IPO was Rs 30-32 per share, with a lot size of 460.
IREDA's net profit increased by 67% to Rs 335.54 crore in the third quarter, driven by loan book growth and a considerable fall in net non-performing assets (NPAs) from 2.03% to 1.52% year on year.
Revenue from operations climbed by 44.21 percent in the third quarter to Rs 1,253.20 crore, up from Rs 868.98 crore in the same quarter the previous year. The PSU's loan book climbed by 33.50 percent in the third quarter, to Rs 50,579.67 crore, from Rs 37,887.69 crore the previous year.
IREDA is a Mini Ratna (Category I) government enterprise. It is managed by the Ministry of New and Renewable Energy (MNRE). For over 36 years, IREDA has actively promoted, developed, and provided financial support for new and renewable energy projects, as well as energy efficiency and conservation initiatives.
