IREDA Shares Plunge 8% After Mutual Funds Reduce Holdings

15 Apr 2024 , 08:41 PM

In the early session on April 15, shares of the Indian Renewable Energy Development Agency fell 8% following the withdrawal of three domestic mutual funds from the counter in March.

IREDA was down 4.96% but significantly off its day’s low of ₹153.25 on the National Stock Exchange (NSE), closing at ₹158.90.

Nuvama Alternative & Quantitative Research stated in a note that Kotak Mutual Fund, Nippon India Mutual Fund, and ICICI Prudential Mutual Fund left IREDA in March, citing information from ACE MF.

Since their names were absent from the public shareholding statistics on the BSE, none of the three fund firms possessed a stake of more than 1% in the company as of the December quarter.

The January–March quarter’s shareholding data has not been made publicly available by IREDA.

Based on the shareholding structure for the December quarter, 15 fund houses controlled 2.87% of IREDA amongst them. After the IPO, international portfolio investors held 1.88% of the company, while the government held a 75% share.

In November, IREDA made its debut on the market. In just three months, the stock shot up to a record high of ₹214.80, nearly seven times its IPO price, before suffering a severe drop.

In March, the stock saw a 10% decline in value amid increased scrutiny of small and midcaps. It has increased by more than 55% so far this year.

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