IREDA share price rises 7% on fundraise move. More upside possible?

Stock market today: After the announcement of the board of directors meeting to consider and approve the rise, Indian Renewable Energy Development Agency (IREDA) shares witnessed a substantial upside during morning deals on Thursday. IREDA share price today opened with an upside gap at ₹246 apiece and touched an intraday high of ₹259.40 per share on the NSE, logging an intraday rise of nearly 7 per cent against Wednesday's close price of ₹238.95 apiece.

IREDA's board meeting, a pivotal event this month, is set to discuss and approve a significant fundraising proposal. The proposal, valued at a substantial ₹4,500 crore, is expected to impact the company's financial standing profoundly. This development has led stock market experts to predict a continued uptrend in IREDA share price, potentially reaching ₹300 per share in the near term.

Why is IREDA share price rising?

Speaking on the rise in IREDA's share price today, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “IREDA share price is on an uptrend due to the fundraising buzz. The PSU has declared a meeting of its board of directors on 29th August to consider and approve the ₹4,500 crore fundraising proposal. This is the reason for bull rend in the PSU stock.”

Gorakshkar said the market believes that IREDA is mulling fundraising, which means the company's order flow is expected to remain sustained.

IREDA share price target

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.”

IREDA news

Through an exchange filing on Wednesday, IREDA declared a fundraising move saying, "In compliance of 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."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.