Up over 610% in less than 1 year, this Navratna PSU stock spurts over 4% as centre stake sale gets go-ahead

IREDA share price: IREDA shares in the early morning trade on September 19 surged over 4 per cent to Rs 237.5 after the stake sale by the centre has been given a go-ahead.

At the last count, shares of the financing firm traded off day's high at just a tad higher by 0.22 per cent or Rs 0.5 at Rs 228 per share on the BSE.

Since its listing last year in November, the stock has made a significant lead with gains of over 600 per cent over the IPO price of Rs 32 per share.

Earlier after market hours in the previous day's trade, the Navratna company in an filing informed that  Department of Investment and Public Asset Management (DIPAM) vide their OM dated September 18, 2024, conveyed the approval of the Alternative Mechanism upon the recommendation of High Level Committee on the proposal of the raising of funds by IREDA, pursuant to which Alternative Mechanism has allowed for the dilution of GOI shareholding in IREDA, owing to issue fresh equity through Qualified Institutions Placement (QIP) route upto an extent of 7% of the paid up equity of IREDA on post issue basis in one or more tranches.

This means that the centre will dilute its 7 per cent stake via QIP in the company.

About IREDA

Indian Renewable Energy Development Agency Limited is an India-based systemically important non-deposit taking non-banking financial (NBFC-ND-SI) company. The Company is engaged in promoting, developing and extending financial assistance for new and renewable energy (RE) projects, and energy efficiency and conservation projects. The Company provides a comprehensive range of financial products and related services, from project conceptualization to post-commissioning, for renewable energy projects and other value chain activities, such as equipment manufacturing and transmission.