The shares of the renewable energy provider fell up to 4 percent after the Index Maintenace Sub-Committee of the National Stock Exchange revoked the inclusion of the company in several key indices.
With a market capitalization of Rs 33,879.27 crore, the shares of Indian Renewable Energy Development Agency Ltd were trading at Rs 126.05 per share, decreasing around 2.59 percent as compared to the previous closing of Rs 129.35 apiece.
According to CNBC, the Index Maintenance Sub-Committee (Equity) of NSE Indices has decided to reverse its decision to include IREDA in the Nifty 500, Nifty Midcap 150, Nifty Midcap 100, Nifty 200, Nifty LargeMidcap 250, Nifty MidSmallcap 400, Nifty Total Market, and Nifty 500 Multicap 50:25:25 indices, effective March 28, 2024.
Additionally, IREDA failed to comply with one of the SEBI Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds in terms of impact cost.
IREDA shares made their Dalal Street debut in November last year at an IPO offering price of Rs 60, quickly rocketing to a record high of Rs 214.8 within 50 trading sessions after listing. However, the stock has seen significant profit booking and is now down 42% from its top.
Looking into Indian Renewable Energy Development Agency Ltd, the company’s revenue increased by 44 percent, from Rs 869 crore in Q3FY23 to Rs 1,253 crore in Q3FY24. During the same period, net profit increased by 67 percent, from Rs 201 crore to Rs 336 crore.
The stock gave a multi-bagger return of 110.67 percent return in 6 months. If an investor invests Rs 1 lakh in the company, he would receive a return of Rs 2.10 lakh in six months.
The Indian Renewable Energy Development Agency (IREDA) is a Mini Ratna (Category – I) government enterprise that promotes, develops, and provides financial support for new and renewable energy (RE) projects, as well as energy efficiency and conservation programs.
Written by:- Abhishek Singh
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