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IREDA (Indian Renewable Energy Development Agency Limited) is a public financial institution established on March 11, 1987. It operates under the Ministry of New and Renewable Energy (MNRE) in India. The primary functions and duties of IREDA include promoting, developing, and extending financial assistance for renewable energy and energy efficiency/conservation projects. Here are some key points about IREDA.

Why IREDA Shares Are Falling? It further proceeds to look at the share prices of IREDA in recent times, probably due to market volatility, changes in policies relating to renewable energy, or financial performance concerns; investors are closely watching to gauge its future growth path.

Market Conditions	Explanation
Market Conditions	Overall trends in the market and economic factors that tend to move the prices of shares.
Company Performance	Recent financial results, profit margins, or revenue shortfalls impacting investor confidence.
Regulatory Changes	New policies or regulations that either positively or negatively impact the Renewable Energy sector.
Investor Sentiment	Changes in investor confidence owing to industry- or company-specific news.

Financial Assistance:

IREDA provides financial support to specific projects and schemes related to electricity generation using new and renewable sources (such as solar, wind, hydro, and biomass) and energy conservation.

Mission and Motto of IREDA:

– Mission: To be a pioneering, participant-friendly, and competitive institution for financing and promoting self-sustaining investments in energy generation from renewable sources, energy efficiency, and environmental technologies for sustainable development.
– Motto: “Energy for Ever.”

Recent Performance:

• In the December quarter, IREDA’s net profit surged 67% to Rs 335.54 crore. An increase in the loan book and a significant reduction in net non-performing assets (NPAs) drove this growth.
  • Operations during Q3 increased revenue by 44.21% to Rs 1,253.20 crore compared to the corresponding quarter last year.
  • IREDA’s loan book climbed to Rs 50,579.67 crore, reflecting a 33.50% increase year-on-year.
• The IREDA shares investors have gained more than 73% profit returns since last 1 month. There is fall in IREDA shares since last few days. A huge amount of investors sold the shares, which is the reason. The company’s IPO opened on 21st November and stayed opened till 23rd November. The lot size was of 460 shares with 32 rupees per lot size. The news was that the renewable energy sector would get a boost, as said by the finance minister Nirmala Sitaraman. The government would give free electricity of about 300 units to 1 crore people under the Roof Top Solar Scheme.

Stock Correction:

• IREDA shares recently experienced a correction, falling 26% from their record high of Rs 215 reached on February 6, 2024.
  • Technical analysts suggest that the stock has witnessed a lower top formation and is currently resisting near the Rs 185 zone.
  • The relative strength index (RSI) stands at 52.9, indicating that it’s trading neither in the overbought nor oversold zone.
  • Analysts recommend monitoring the Rs 154 support level; a daily close below this could lead to a target of Rs 124.

Through these efforts, IREDA plays a crucial role in advancing India’s transition toward cleaner and more sustainable energy sources. Its commitment aligns with the government’s goal of achieving a 500 GW non-fossil fuel-based electricity generation capacity by 2030.
IREDA finances and promotes renewable energy projects in India, and technical factors and market dynamics may influence its recent stock correction.

Recent surge in the IREDA stock has an exciting future

• IREDA is share which is dependent on Renewable Energy. With the demand for renewable energy increasing in India and the world, IREDA shares have a bright prospect.
• The share recently surged 9% following the news that its board would raise ₹4500 crore through multiple funding options. During a meeting which is to be held on 29th August, IREDA’s board is expected for a follow on Public offer(FPO) or other modes. The IREDA company is expected to increase its shares in original Initial Public Offer(IPO).

• IREDA reported a net increase in profit of around 30% over a year ago and gave a profit of about ₹384 crore for the quarter ended June 30, 2024.
• As of now the stock is trading higher than its 10-day, 20-day, 100-day, 150-day and a 200-day simple moving averages. The consensus recommendation from the analysts for a stock is a ‘Hold’.
• The Follow up Public Offer is expected to raise ₹4500 crore hence has increased the stock to 9% rise. There is a overall rise of 700% in the IREDA stock since listed in November 2023.
• The financial performance of IREDA is extremely impressive as the revenue from operations has been ₹1502 crore in the quarter under study, which enlarges to more than 32%. The state run NBFC ahs also sanctioned a loan of worth of ₹9210 crores, which signifies growth.
• Investors view IREDA as a great long-term investment because it focuses mainly on green energy, which has high prospects.
• As of the foreign portfolio investors(FPI’s) there has been an increase in the stake of IREDA to 2.7% from the previous quarter when it was 1.36%.
• The company in question could face any regulatory or legal implications that import its operational and financial dynamics.

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