IREDA Shares Reach New Heights, Now Seven Times Higher Than IPO Price After Multiple Block Deals

Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) soared to a new record high on Wednesday, surpassing its previous peak of ₹214, which it had achieved shortly after its listing. The stock reached an intraday high of ₹217 on Wednesday. On Tuesday, the stock had rebounded by over 6% from its daily low in the final minutes of trading, following a significant block deal.

In this block deal, 50 lakh shares of IREDA were traded, representing 0.16% of the company’s total equity, with a transaction value of ₹100 crore. Another substantial block deal occurred on Wednesday, involving 89.2 lakh shares or 0.35% of the total equity, worth ₹189.4 crore. This transaction was executed at an average price of ₹213 per share. The identities of the buyers and sellers in these transactions have not yet been officially disclosed.

In an interview with CNBC-TV18 on Monday, IREDA’s Chairman and Managing Director, Pradip Kumar Das, mentioned that the company has requested government approval to conduct a Follow-on Public Offer (FPO) to raise additional equity, given the company’s rapid growth. Through the FPO, IREDA aims to raise between ₹4,000 crore and ₹5,000 crore. Das also stated that IREDA has asked the Finance Ministry to include it under Section 54EC of the Income Tax Act, which would help reduce its borrowing costs.

IREDA went public in November last year, with its Initial Public Offer priced at ₹32 per share. As of the end of the March quarter, the government held a 75% stake in the company. Currently, IREDA shares are trading 4.3% higher at ₹214.4, having doubled in value in 2024, with a total increase of 104% so far.