Shares of Indian Renewable Energy Development Agency Ltd (ERDA) will be in focus tomorrow on Thursday. Because the company has given a great information about the stock market. The company said its board has approved equity investment of up to 10 per cent in GMR Upper Karnali Hydro Power Ltd and Karnali Transmission Company Pvt Ltd to set up a 900 MW hydropower project in Nepal. The investment amount for this project associated with SJVN Limited is around Rs.290 crores.
What did the company say?
IREDA Chairman and Managing Director (CMD) Pradeep Kumar Das said, This strategic investment is in line with our commitment to expand renewable energy infrastructure and promote international cooperation in this sector. The project is an important step towards harnessing the hydropower potential in Nepal, which will contribute to regional energy security and environment-friendly development. The company will take a 10 percent stake in the Upper Karnali Hydro-Electric Power Project.
What is the stock status?
IREDA shares last year on November 29, 2023 at Rs. 49.99 was at a one-year low. From this level it jumped 520 percent in 8 months to reach Rs. 310.00 hit a record high. It is currently 12 percent downside from this level. On Tuesday, the company's stock fell over 6 percent to Rs. closed at 272.20.
Experts say that if its rise is not based on any fundamentals, it may fall. Talking about SJVN, last year on July 18, 2023, the share was Rs. was at a one-year low of 45.32. From this level it jumped 272 percent in 7 months to Rs. It hit a one-year high of 170.45. It is currently 11 percent downside from this level.
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