NSE Revokes IREDA’s Inclusion in Key Indices

On February 28, 2024, NSE made a significant announcement regarding the inclusion of Indian Renewable Energy Development Agency Limited popularly known as IREDA in various key indices such as Nifty 500, Nifty Midcap 150, Nifty Midcap 100, and so on with effect from March 28, 2024.

However, recent developments have led to an unexpected twist. IREDA, a prominent player in India’s renewable energy landscape, breached one of the requirements outlined by SEBI Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds, specifically related to impact cost and the Committee has decided to revoke its earlier decision to include IREDA announced in February. Hence, it will not be included in key indices such as Nifty 500, Nifty Midcap 150, Nifty Midcap 100, Nifty 200, Nifty LargeMidcap 250, Nifty MidSmallcap 400, Nifty Total Market, and Nifty500 Multicap 50:25:25 indices.

“According to NSE, as IREDA breached one of the requirements of SEBI Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds related to impact cost, the Committee has decided to revoke its earlier decision to include IREDA announced on February 28, 2024.”

Share Price Movement

Following the announcement, the shares of IREDA fell around 3.82% today and hit an intraday low of Rs 124.40 per share on the NSE. However, it closed at Rs 125.90 per share, representing a decline of 2.67% compared to the previous day’s closing price of Rs 129.35 per share.

The current market capitalisation of IREDA stands at Rs 33,838.96 crore on the NSE. Additionally, the company’s stock has generated a return of around 20% in the past three months and a 293% return over its final issue price during the IPO of Rs 32 per share.

Company Overview

IREDA is a Mini Ratna (Category – I) government enterprise. It operates in the business of promoting, developing, and extending financial assistance for new and renewable energy (RE) projects, as well as energy efficiency and conservation (EEC) projects. The company was incorporated in March 1987.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.