“Indian Renewable Energy Development Agency and Indian Overseas Bank have joined hands by signing a memorandum of understanding (MoU). The agreement sets the stage for co-lending and loan syndication for a diverse spectrum of renewable energy projects across the nation,” the company said in an exchange filing.
On the development, Pradip Kumar Das, IREDA CMD said, “By combining our strengths and resources, we aim to provide robust financial support to renewable energy projects. The partnership aims to streamline loan syndication and underwriting processes, management of Trust and Retention Account (TRA) for IREDA borrowers, and work towards fixed interest rates over a 3-4-year period for IREDA borrowings”.
This collaboration builds upon IREDA’s successful partnerships with other prominent financial institutions, including Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited and Bank of Maharashtra, Das said.
At 11.13 am, the scrip was trading 4.1% higher at Rs 124.4 on BSE. From the IPO listing price of Rs 50 per share, IREDA shares rallied 151%. Meanwhile, the stock has also surged 292% from its issue price of Rs 32 per share. The stock went public on November 29, 2023.
With Wednesday’s rally, IREDA’s market cap crossed the Rs 33,500 crore mark.
IREDA was the first public sector company to enter the capital markets in more than a year, following the public issue of Life Insurance Corporation of India in May 2022.As per Trendlyne data, the average target price of the stock is Rs 80, which shows a downside of 35% from the current market prices. The consensus recommendation from one analyst for the stock is a ‘Strong Sell’.
Technically, the stock is in the overbought zone as its day RSI (14) is at 72.2. The RSI below 30 is considered oversold and above 70 is overbought.
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