Indian Renewable Energy Development Agency (IREDA) shares experienced a significant boost, surging over 4% on June 24, following the company's successful raising of Rs 1,500 crore through bond issuance.

The bond sale, which included a base issue of Rs 500 crore and an additional green shoe option of Rs 1,000 crore, was met with strong investor interest, being oversubscribed by 2.65 times.

The bonds were issued at an annual interest rate of 7.44% with a tenure of 10 years and two months.

This positive market response has further solidified IREDA's position as a high-performing stock.

The company's shares, which initially listed at Rs 50 last year, closed at Rs 187.85, marking an impressive 82% increase so far this year.

The stock reached an all-time high of Rs 215 on February 6, 2024, showcasing its robust growth trajectory.

In addition to the successful bond issuance, IREDA's inclusion in the FTSE All World Index has been a significant catalyst for its stock performance.

The inclusion took effect during the June 21 trading session, leading to anticipated inflows worth $57 million into IREDA shares, according to IIFL Alternate Research.

This resulted in a sharp surge in trading activity, particularly in the final 30 minutes of the session when the FTSE adjustments were implemented.

IREDA, a Mini Ratna (Category - I) Public Sector Undertaking (PSU) under the Ministry of New and Renewable Energy, plays a pivotal role in financing and supporting renewable energy projects and energy efficiency initiatives across India.

The company’s initial public offering (IPO) in November last year saw its equity shares priced at Rs 32 each. IREDA’s shares had a stellar debut on the stock exchanges, opening at Rs 60 and achieving a listing gain of 87.5%.

As of 9:31 am today, IREDA shares were trading 2.2% higher at Rs 191.66 on the National Stock Exchange (NSE).

Technical analysts, including Osho Krishan from Angel One, have noted that IREDA is in a strong upward trend, comfortably positioned above all its major Exponential Moving Averages (EMAs) on the daily chart.

Krishan highlighted that the stock has been steadily gaining momentum since the start of the new financial year and is well-poised to challenge its all-time high.

He pointed out that the stock is well-supported in the Rs 170-160 range and maintaining this level could benefit buyers during any market dips.

However, he noted that breaking through the Rs 195-200 range could pose a challenge for the bulls, with a decisive breach potentially triggering the next phase of the rally.

Additionally, Choice Broking has assigned a 'buy' rating to IREDA shares with a target price of Rs 203 per share, reflecting confidence in the stock's continued upward trajectory.

So far this year, IREDA shares have significantly outperformed the benchmark Nifty, which has seen returns of around 8%.

In summary, IREDA's robust performance in the stock market, bolstered by strategic financial moves and positive market sentiment, underscores its vital role in India's renewable energy sector and its strong growth potential moving forward.