Indian Renewable Energy Development Agency Limited (IREDA) is an Indian public sector enterprise that provides financial assistance and other services to projects related to renewable sources of energy and energy efficiency/conservation.
The stock of IREDA since listing has given a return of ~30%.
This is important to know because the stock has gotten a heaving beating in the past 30–40 days
The fall comes on the back of intervention by RBI to protect the retail investors who might get caught in the valuation trap owing to a huge runup at the start of March 2024
SEBI and RBI join hands to curb liquidity, small & midcap shares may face the heat (Link)
This has led to a heavy correction in the markets
Owing to this, SEBI has tightened the upper-lower circuit for the stock which limits the rise and fall of the stock to 5% only.
Before this, the stock could rise and fall by more than 10% daily.
If the stock falls to -5%, despite sellers being there – if there are NO buyers, the sale cannot be possible.
This is one reason why a lot of retail investors are stuck with IREDA and other small-cap shares.
An important milestone to look for
IREDA to see 147 crore shares be eligible for trade-in May, here are the other lock-ins ending (Link)
This should lead to the following outcomes
- Liquidity in trading
- Fall in prices to reflect valuation in line with earnings and order book
- Set a benchmark for other companies operating this space
Hope this helps
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Lateral Thinking 
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