The stock market was a bit slow at the start of trading on Friday, the last day of the week.
But something interesting happened with the shares of Indian Renewable Energy Development Agency Limited (IREDA) – they went up.
On Friday, IREDA shares went up by about 12 percent to Rs 178.80.
This is higher than the Rs 158.35 they closed at on Thursday.
Why did the price go up?
Recently, the Bombay Stock Exchange said in a notice that the limit for IREDA, along with 13 other companies,
has been changed from 5 percent to 20 percent.
This means IREDA’s shares can now go up or down by as much as 20 percent in one trading session.
Just so you know, SEBI has different limits for how much a stock price can change in a day – 2 percent, 5 percent, 10 percent, and 20 percent.
Keep an eye on the Reserve Bank’s announcements
Like other finance-related companies, IREDA’s shares were also affected by what the Reserve Bank of India (RBI) decided in its latest meeting about interest rates.
The RBI didn’t change the interest rates for the seventh time in a row.
The repo rate, which is the rate at which the RBI lends money to banks, stayed the same at 6.5 percent.
This was the first time the central bank announced its monetary policy for the financial year 2024-2025.
IREDA’s IPO back in November 2023
IREDA started selling its shares to the public in November 2023, which is called an Initial Public Offering (IPO).
They raised a total of Rs 2,150.21 crore by selling a part of the company. The price of each share during the IPO was Rs 32.
When the shares were listed on the stock exchange, they were priced at Rs 49.99, which is 56 percent higher than the IPO price.
Since then, the company’s shares have gone up by 445 percent from the IPO price.
