IREDA shares near the ₹300 mark after foreign investors double stake in June quarter

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Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. have surged as much as 13% on Thursday to hit another record high of ₹279. With Thursday’s move, the market capitalisation of IREDA has hit ₹75,000 crore.

The stock has gained in four out of the last five trading sessions. The company came out with the June quarter shareholding pattern on Thursday where it disclosed that foreign portfolio investors have doubled their stake in the renewable energy PSU.

As of the quarter that ended on June 30, foreign portfolio investors had a 2.7% stake in IREDA, compared to 1.36% in the March quarter. However, no notable name has emerged in the list of shareholders with a stake in excess of 1%.

The number of small shareholders too has seen an increase in the April-June period. The total number of shareholders with an authorised share capital of less than ₹2 lakh increased to 22.15 lakh from 21.23 lakh in the March quarter.
On the flip side, the share of India’s domestic mutual funds have reduced their stake in the company, choosing to book profits as the stock has scaled new highs. Mutual Funds held a 0.24% stake from the 0.53% they held as of the end of March.

In an interaction with CNBC-TV18 earlier in June, the management of IREDA said that the company has applied to the government, seeking permission to carry out a Follow-on Public Offer (FPO) to raise between ₹4,000 crore to ₹5,000 crore. The management said that considering the pace at which they are growing, they would need more equity capital.

IREDA’s shares had made their stock market debut in November last year at a price of ₹32 per share. Since then, the stock has gained more than 8x from its IPO price, and is now nearing levels of ₹300.

On the charts, the stock is trading in “overbought” territory with Relative Strength Index (RSI) at 83. An RSI reading above 70 indicates that the stock is in “overbought” territory.

Shares of IREDA are trading 14.3% higher on Thursday at ₹282.7. The stock is up 46% so far in the month of July.