IREDA shares rally over 10%; stock zooms 445% over IPO price

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) surged more than 10 per cent during the trading session on Monday. The stock logged strong gains after BSE revised the circuit filter limit for the state-run financial player after-market hours on Thursday.

In its recent circular, BSE said that the circuit filter for IREDA, along with 13 other companies, has now been revised to 20 per cent from 5 per cent earlier. Shares of IREDA surged more 10.15 per cent to Rs 174.45 on Friday, with its total market capitalization crossing Rs 46,500 crore mark. The scrip had settled at Rs 158.35 on Thursday.

A 20 per cent circuit filter for IREDA means that its shares can rise or fall to a maximum extent of 20 per cent for a trading session. It is the higher circuit filter for individual stocks in the cash market. Sebi has four circuit levels for individual stocks in the cash market at 2 per cent, 5 per cent ,10 per cent and 20 per cent.

After hitting the circuit limit in either direction, the trading of the stock is halted depending upon the time at which the stock hits the circuit. However, bids in opposite directions can break the circuit.

IREDA, along with other financial and rate sensitive stocks, also hogged limelight during the trading session on Friday as the RBI kept the interest rates unchanged for the seventh straight time. It was the first monetary policy outcome by the central bank for FY25.

IREDA had launched its IPO in November 2023 and raised a total of Rs 2,150.21 crore via its initial stake sale. State-run shadow lender sold its shares for Rs 32 apiece and the stock has delivered a return of 445 per cent from its issue price so far. The stock was listed at 49.99, a premium of 56 per cent over its issue price.

Along with IREDA, BSE has revised circuit filters for other 13 companies to 20 per cent from 5 per cent earlier. The list includes names like Shipping Corporation of India, Paramount Communications, Nucleus Software Exports, Indraprastha Medical Corporation, DB Realty, Indostar Capital Finance, EMS and more.