During Thursday morning trading, shares of the Indian Renewable Energy Development Agency (IREDA) saw a significant increase following the announcement of the board of directors meeting to discuss and approve the rise. In comparison to Wednesday’s closing price of ₹238.95 per share, the IREDA share price today opened with an upside gap at ₹246 apiece and reached an intraday high of ₹259.40 per share on the NSE, registering an intraday climb of about 7%.
This month’s crucial IREDA board meeting is scheduled to debate and accept a major fundraising request. The proposal, which has a high value of ₹4,500 crore, is anticipated to have a significant effect on the company’s financial situation. Due to this development, stock market analysts have predicted that the price of IREDA shares will continue to rise, maybe reaching ₹300 per share shortly.
Reason Behind IREDA share price rise
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the increase in IREDA’s share price today, stating that it is “on an uptrend due to the fundraising buzz.” The PSU has scheduled a board of directors meeting for August 29th to discuss and approve the proposal for ₹4,500 crore in fundraising. This explains the recent surge in PSU stock prices.
According to Gorakshkar, the market assumes that IREDA is considering raising money, which implies that the company’s order flow will likely continue.
Expecting more upside in IREDA shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “IREDA shares look positive on the chart pattern. So, IREDA shareholders can hold the scrip maintaining stop loss at ₹235 for the near-term target of ₹280 and ₹300 apiece.”
On the suggestion to the fresh investors, Sumeet Bagadia said, “Fresh investors can also buy and hold the scrip for the near-term targets of ₹280 and ₹300 apiece. However, they must maintain stop loss at ₹235 while taking any fresh position in the scrip.”
Through an exchange filing on Wednesday, IREDA announced the action stating, “In compliance with regulation 29 (1) of SEBI (Listing and Disclosure Requirements) Regulations 2015, this is to inform that Board meeting of Indian Renewable Energy Development Agency Limited is scheduled to be held on Thursday, August 29, 2024, inter-alia, to consider and approve the proposal for raising of funds by way of equity share capital for an amount aggregating of upto Rs. 4500 Crore in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or a combination, as may be deemed appropriate, subject to the Statutory or Govt. Approval.”
