President of India’s portfolio gains Rs 2856,42,19,406 from this penny stock in just 1 day; scrip hit upper circuit & 52-week high!

The stock is up by 70 per cent from its 52-week low of Rs 49.99 per share.

Indian markets soared to new heights today, propelled by bullish sentiment and strong investor confidence. Both the Sensex and Nifty reached record levels, with the Sensex breaching the 70,000 mark and the Nifty surpassing the 21,000 threshold. 

Along with the market in green, this recently listed penny stock hit 20 per cent to Rs 85.02 per share from its previous closing of Rs 70.85; being one of the Top Gainers on BSE & NSE. The stock also made a new 52-week high of Rs 85.02 per share with a spurt in volume by more than 1.46 times on BSE.

Before unveiling the stock name, let's delve deeper into the mystery surrounding the President of India's portfolio's dramatic increase. Here are the details:

The President of India owns 2,01,58,23,529 shares or 75 per cent stake in the company. Today at the closing bell, the stock is up 14.17 points or 20 per cent.

Therefore, 2,01,58,23,529 shares x 14.17 per share = Rs 2856,42,19,406 from this penny stock in just 1 day.

The stock name is Indian Renewable Energy Development Agency Ltd (IREDA).

IREDA, a government-owned entity, plays a crucial role in India's renewable energy sector. Established in 1987, it promotes and finances projects in various renewable sources, including solar, wind, hydro, and bioenergy. Its motto, "Energy forever," reflects its commitment to a sustainable future.

IREDA offers diverse financial products, from project conceptualization to post-commissioning support. It provides both direct (loans) and indirect (guarantees) financial assistance, covering project finance, short-term loans, and debt refinancing.

IREDA's focus extends beyond traditional renewables, encompassing waste-to-energy, biogas, and emerging technologies. Its commitment to clean energy is evident in its diverse financing schemes, aimed at facilitating India's transition towards a greener future.

The company recently went public through an Initial Public Offering (IPO), where each share, with a face value of Rs 10, was offered at Rs 32. On the listing day, the share price surged to Rs 49.99, marking a significant 56.22 per cent increase from the IPO price. This translates to a staggering 165.7 per cent multibagger gain for any investor who bought shares in the IPO and continues to hold them.

The company has a market of Rs 22,851.38 crore and reported positive numbers in its Quarterly Results (Q2FY24) and annual results (FY23). The shares of the company have a PE of 26.4x, an ROE of 15.4 per cent and an ROCE of 8.2 per cent. The stock is up by 70 per cent from its 52-week low of Rs 49.99 per share.

Do you own IREDA’s stock in your portfolio? Do let us know in the comments below

Disclaimer: The article is for informational purposes only and not investment advice.