Stock market today: Following the announcement of the board meeting to review and approve the increase, shares of Indian Renewable Energy Development Agency (IREDA) saw a significant uptrend in morning trade on Thursday. IREDA share price opened today with an upside gap of ₹246 shares and reached an intraday high of ₹259.40 per share on the NSE, representing an intraday rise of nearly 7 percent over Wednesday’s closing price of. ₹238.95 each.
The IREDA Board meeting, a major event this month, is scheduled to discuss and approve an important fundraising proposal. The proposal, whose value is considerable ₹4,500 crore, is expected to have a significant impact on the company’s financial position. This development has led stock market experts to predict a sustained uptrend in IREDA’s share price, which may ₹300 per share in the near future.
Why is the IREDA share price rising?
Commenting on today’s rise in IREDA share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “IREDA share price is on an uptrend due to the spirit of donations. The PSU has called a meeting of its Board of Directors on August 29 to discuss the ₹4,500 crore fundraising proposal. This is the reason for the bull market in PSU stock.”
Gorakshkar said the market expects IREDA to consider raising capital, which means the company’s order intake is expected to continue.
Price target for IREDA shares
Sumeet Bagadia, Executive Director at Choice Broking, expects further gains in IREDA shares and said, “IREDA shares are looking positive in the chart pattern. So, IREDA shareholders can hold the stock and keep the stop loss at ₹235 for the short-term target of ₹280 and ₹300 each.”
Commenting on the suggestion for the new investors, Sumeet Bagadia said, “New investors can also buy and hold the stock for the short-term goals. ₹280 and ₹300 per piece. However, they must maintain stop loss at ₹235 while you take a new position in the stock.”
IREDA News
In a stock exchange notification on Wednesday, IREDA announced a capital raising exercise, saying, “In accordance with Section 29(1) of the SEBI (Listing and Disclosure Requirements) Regulations, 2015, notice is hereby given that a Board Meeting of the Indian Renewable Energy Development Agency Limited is to be held on Thursday, August 29, 2024 for the purpose of considering and approving, inter alia, the proposal to raise capital by way of equity capital up to Rs. 4,500 crore in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Rights Issue / Preferential Issue or any other permissible method or combination as deemed appropriate, subject to statutory or regulatory approval.”
Disclaimer: The views and recommendations expressed in this article are those of individual analysts. They do not reflect the views of Mint. We advise investors to seek advice from certified professionals before making any investment decisions.
