Shares of this midcap company fell around 8 percent in Monday’s trading session after three mutual funds exited in March. In five trading sessions, the stock has given a negative return of 12 percent to its shareholders.
With a market capitalization of Rs. 43,004 crores, the shares of Indian Renewable Energy Development Agency Ltd (IREDA) started Monday’s trading session on a lower note at Rs. 160 compared to its previous close of Rs. 167.20. During the trading session, the shares hit a low of Rs. 153.25, making a loss of around 8 percent and are currently trading at Rs. 159 apiece.
According to reports, a note from Nuvama Alternative and Quantitative Research, citing data from ACE MF, stated that Kotak Mutual Fund, Nippon India Mutual Fund, and ICICI Prudential Mutual Fund exited from the stock during March.
As of December 31, 2023, none of the three aforementioned fund houses was listed in the public ownership data on the BSE, suggesting that each held a stake of less than 1 percent in the firm.
According to the latest shareholding pattern, the government retained a majority ownership stake of 75 percent in the company, while foreign portfolio investors (FPIs) held a modest ownership share of 1.88 percent. This indicates a significant level of government control and a relatively low level of foreign investment in the company.
Coming onto the company’s financial statements, the revenue decreased by 30 percent from Rs. 1,777 crores during the September quarter to Rs. 1,253 crores in the December quarter. On a contrasting note, the net profits increased by 18 percent from Rs. 285 crores to Rs. 336 crores during the same timeframe.
Additionally, as of December 31, 2023, the outstanding loan amount of IREDA stood at Rs. 50,580 crores, marking an increase from Rs. 37,888 crores recorded as of December 2022. This indicates a significant rise in the loan portfolio of IREDA within the specified period.
Although experiencing short-term negative returns, the stocks have exhibited a multibagger growth of 165 percent over the past six months. For instance, an investment of Rs. 1 lakh in these shares half a year ago would now amount to Rs. 2.65 lakhs.
Headquartered in New Delhi, Indian Renewable Energy Development Agency was incorporated in 1987. It is a Mini Ratna government enterprise in the business of promoting, developing, and extending financial assistance for new and renewable energy (RE) projects, and energy efficiency and conservation (EEC) projects.
Written By Vaibhav Patil
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