IREDA shares slipped over 8% intraday today; here's why

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) fell over 8% on an intraday basis on Monday after three domestic mutual funds exited the stock of the public sector firm in March 2024. Kotak Mutual Fund, Nippon India Mutual Fund, and ICICI Prudential Mutual Fund exited from the stock last month, according to a note from Nuvama Alternative & Quantitative Research, citing data from ACE MF.

IREDA share price slipped 8.37% intraday to Rs 153.20 against the previous close of Rs 167.20 on BSE. Later, the IREDA stock ended 5.17% lower at Rs 158.55 on BSE.

It also touched an intraday high of Rs 163.10.

As per shareholding pattern data as of December 31, 2023, names of neither of the three fund houses appeared on the BSE, signaling that they each held less than 1% stake in the state-owned firm.

The government held 75% stake in the company, with foreign portfolio investors (FPIs) owning 1.88%.

Investor wealth in the firm shrinked to Rs 42,614 crore on BSE. IREDA saw 95.08 lakh shares changing hands amounting to a turnover of Rs 150.50 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 60, signaling it's trading neither in the overbought nor in the oversold zone. IREDA shares are trading lower than the 5 day, 10 day, 50 day but higher than the 20 day and 30 day moving averages.

The renewable energy stock surged to its record high of Rs 215 on February 6 this year. Compared to its IPO issue price of Rs 32, the stock had surged 304% till date.

The IREDA stock made its market debut on November 29, 2023. The stock listed at Rs 50, a premium of 56.25% over the IPO issue price of Rs 32.

The IPO was open from November 21 to November 23, 2023. The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. IREDA posted a 67 per cent rise in net profit to Rs 335.54 crore in Q3, led by growth in the loan book and a significant reduction in net non-performing assets (NPAs) from 2.03 per cent to 1.52 per cent year-on-year.

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.