IREDA shares: Two factors that pumped the multibagger stock on Friday

Shares of Indian Renewable Energy Development Agency (IREDA) ended 6% higher on Friday after CARE Ratings Limited upgraded the firm’s ratings on bonds/NCDs of the company from CARE AA+; positive (Double A Plus; outlook: positive) to CARE AAA; stable (Triple A; outlook: stable). The multibagger stock has also been included to the FTSE All World Index, which led to positive sentiment around the scrip on Friday.

IREDA stock closed 5.83% higher at Rs 187.85 on Friday. Market cap of the firm stood at Rs 50,489 crore. The IREDA stock has risen over 79% in 2024 and gained 42% in three months.

IREDA shares saw a high turnover of Rs 208.64 crore on Friday as 112.63 lakh shares changed hands on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 49.6, signaling it's trading neither in the overbought nor in the oversold zone. The stock has risen 275% from its 52 week low of Rs 49.99 reached on November 29, 2023.  

In an additional development, the state-run renewable energy financier was included in the FTSE All World Index, the adjustment for which took place in the current session.

IIFL Alternate Research expected inflows worth $57 million into IREDA shares on Friday. The stock rose 7.5% intraday in the last 30 minutes of trade today when the FTSE adjustments took effect.

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.