IREDA shares surge after strong market listing. Should you hold or exit?

IREDA share price: At around 12:25 pm, shares of IREDA were trading nearly 86 per cent higher than its IPO issue price at Rs 59.25 on the National Stock Exchange (NSE) and 59.48 on the Bombay Stock Exchange (BSE).

Shares of the Indian Renewable Energy Development Agency (IREDA), a non-banking financial company that focuses on renewable energy projects, extended gains after making a bumper debut on Dalal Street, following its successful initial public offering (IPO).

At around 12:25 pm, shares of IREDA were trading nearly 86 per cent higher than its IPO issue price at Rs 59.25 on the National Stock Exchange (NSE) and 59.48 on the Bombay Stock Exchange (BSE). The current market capitalisation of the company stands at over 16,000 crore and it has emerged as one the most heavily-traded stocks during the trading session.

Earlier in the day, the company’s shares listed on the BSE and NSE at Rs 50, marking a premium of over 56 per cent over the issue price of Rs 32. This was widely in line with what analysts had expected and better than what grey market trends suggested.

As the shares of the company continue to gain momentum, investors who had successfully acquired stakes during the IPO are wondering whether they should sell the stock or hold on for better gains. Meanwhile, investors who had missed out on the IPO are mulling buying into the stock.

Should you buy, hold or sell?

It is worth mentioning that robust trading activity has been observed for IREDA shares today, with a substantial trade volume of over 51 crore shares. This indicates sustained buying interest in the stock, even at elevated levels.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said the listing was above the market expectations, reflecting the strong fundamentals and growth potential of the company.

“IREDA's strong financial performance and focus on the burgeoning renewable energy sector make it an attractive investment proposition. The renewable energy sector is poised for significant growth in the coming years, driven by government initiatives and increasing environmental concerns,” Nyati added.

“Investors who participated in the IREDA IPO can be pleased with the strong listing gains. The company's long-term prospects also appear promising, making it a worthwhile investment for those with a long-term investment horizon,” she added.

Several other analysts also believe that IREDA is a long-term opportunity, indicating that investors who had acquired shares during the IPO should hold on to them. Meanwhile, Prashanth Tapse of Mehta Equities told livemint.com that those who failed to acquire IREDA shares during the IPO can accumulate on every dip and hold it for a longer period for healthy returns.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

Published By:
Koustav Das
Published On:
Nov 29, 2023