IREDA Share Price Dips as Lock-In Period Ends for 54 Crore Shares

Market Performance

The IREDA share price experienced a mild dip in early trade on Monday, June 2, following a significant development that impacted investor sentiment.

• At 9:20 AM, IREDA shares were trading at Rs 174, down 0.66% on the NSE.
• The stock touched Rs 173 earlier in the morning, marking a decline of over 1% from the previous close.

Despite the recent weakness, IREDA shares have gained 12% in the last three months, although they are down 19% year-to-date (YTD) in 2025.

Main News

The primary trigger behind the share price movement is the expiry of a six-month lock-in period on a large chunk of equity.

• 53.8 Crore shares, equivalent to 20% of IREDA's total equity, became eligible for trading.
• Based on Friday's closing price, the market value of these unlocked shares is over Rs 9,400 Crore, or more than $1 billion.

While the end of a lock-in doesn't directly lead to selling, the availability of such a massive volume can influence market dynamics due to potential supply pressure.

Company Details

The IREDA, a public sector enterprise, made a strong market debut and continues to attract sustained investor interest.

• The stock has increased more than fivefold from its initial public offering (IPO) price of Rs 32.
• At its peak, it had rallied nearly 10 times, touching Rs 310, before retracting from those highs.

Financial Highlights

Revenue

• Revenue from operations for Q4 FY25 stood at Rs 1,905.06 Crore, marking a 37% rise compared to the same period last year.

Net Profits

• Net profit for Q4 FY25 rose to Rs 501.55 Crore, up 49% from Rs 337.39 Crore in Q4 FY24.

EBITDA Margins

• FY25 margins were reported at 3.27%.

Other Financial Metrics

• Assets under management increased by 28% in the March quarter.
• Net interest income surged by 57% YoY.
• Asset quality also improved sequentially from the December quarter.

Summary

The IREDA share price reacted to the expiry of a significant lock-in period, which freed up 54 Crore shares for potential trading. Though this doesn't guarantee immediate selling, the increase in available float has prompted cautious investor moves. Despite a YTD decline, the PSU firm continues to display strong financial growth, robust profit margins, and solid operational performance.