The Indian Renewable Energy Development Agency (IREDA) has been a remarkable player in India’s renewable energy sector. The company’s stock has gained significant attention ever since its IPO, and with the upcoming financial results announcement on October 10, 2024, investors are eager to see what’s next. Here’s a closer look at IREDA’s stock performance, its future plans, and why it’s one of the most talked-about stocks in the market right now.
IREDA’s Performance Since Listing
IREDA made its stock market debut on November 29, 2023, with its shares listing at ₹50 on the Bombay Stock Exchange (BSE). On the same day, the stock closed at ₹59.99. Since then, IREDA’s share price has skyrocketed by an impressive 343%, closing at ₹221.75 on October 4, 2024. This incredible rise has caught the attention of both institutional and retail investors.
In just under a year, IREDA has become a multibagger stock, providing huge returns to its shareholders. The company’s IPO, which was 38.80 times oversubscribed, marked a turning point for the stock, and it has shown steady growth ever since.
As of June 2024, the company’s market capitalization stands at ₹59,600 crore, with 75% promoter holding. This makes IREDA not just a stock to watch but a key player in India’s push toward renewable energy.
Financial Results on October 10, 2024
Investors are eagerly awaiting IREDA’s financial results for the July-September 2024 quarter and the April-September 2024 half-year period. The results will be announced following a board meeting on October 10, 2024. There is also speculation that the board will finalize an interim dividend for FY2025 during this meeting.
This could be a significant announcement, as dividends often signal a company’s financial health and stability, making IREDA an even more attractive option for long-term investors.
Key Highlights of Recent Financials
IREDA has consistently delivered strong financial performance. In the April-June 2024 quarter, the company reported a net profit of ₹383.69 crore, marking a 30% year-on-year increase from ₹294.58 crore in the same period last year.
Revenue from operations also saw a significant jump, growing 31% year-on-year to ₹1,501.71 crore from ₹1,143.50 crore. This strong performance sets the stage for the upcoming results, with expectations high that IREDA will continue its robust growth trajectory.
Future Plans and Fundraising Goals
Looking ahead, IREDA has ambitious fundraising goals. The company plans to raise ₹29,500 crore in FY2025. Out of this, ₹25,000 crore will be raised from the debt market, and ₹4,500 crore will be gathered through equity fundraising.
In August 2024, the company’s board approved a proposal to raise ₹4,500 crore through various means, including a Follow-on Public Offer (FPO), Qualified Institutional Placement (QIP), rights issue, or preferential issue. This fundraising is expected to boost IREDA’s growth and enable it to finance more renewable energy projects across India.
IREDA as a Multibagger Stock
For investors, IREDA has proven to be a multibagger stock. Over the past four years, it has delivered an astonishing 7,100% return, transforming a ₹1.5 lakh investment into ₹1 crore.
This type of performance is rare in the stock market, making IREDA a prime example of how investing in companies with a focus on renewable energy and financial services can yield massive rewards over time.
Conclusion
IREDA’s stock performance since its IPO has been nothing short of extraordinary, with a 343% rise since listing. As the company prepares to announce its financial results and a possible interim dividend, investors are optimistic about its future. With strong financials, ambitious fundraising plans, and a commitment to supporting India’s renewable energy transition, IREDA remains a top pick for both short-term and long-term investors.
If you’re looking to invest in the renewable energy sector or searching for a promising stock with growth potential, IREDA could be the opportunity you’ve been waiting for.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investing in the stock market involves risks, and you should consult with a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred.