IREDA shares: Two factors why the green energy stock is in news today

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) are in news today due to two announcements made by the firm on Thursday. The company said its board has approved raising of funds via equity capital for an amount aggregating up to Rs 4,500 crore in one or more tranches. The funds will be raised via Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or a combination thereof. 

In another announcement, the green energy firm said it has secured its international credit rating. S&P Global Ratings Limited assigned 'BBB-' long-term and 'A-3' short-term issuer credit ratings to IREDA, with Outlook ‘Stable’.

“We rate IREDA one notch above our starting point for rating finance companies (fincos) in India to reflect ongoing government support,” said S&P Global. 

In the previous session, IREDA shares ended flat at Rs 254.75 on BSE. 

Market cap of the firm rose to Rs 68,470 crore on Thursday. 

IREDA saw 26.52 lakh shares changing hands amounting to a turnover of Rs 67.98 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 54.9, signaling it's trading neither in the overbought nor in the oversold zone.

IREDA shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 150 day moving averages.

The renewable energy stock surged to its record high of Rs 310 on July 15, 2024. 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 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.