Why Is Ireda Falling?

Indian Renewable Energy Development Agency Ltd (IREDA) has been experiencing a decline in its stock price over the past few days. This decline has raised concerns among investors and analysts, who are trying to understand the reasons behind it. In this article, we will explore the factors that might be contributing to IREDA’s fall and discuss its implications for the renewable energy sector.

The Approval for a Wholly-Owned Subsidiary

IREDA recently received approval from the Reserve Bank of India (RBI) to set up its wholly-owned subsidiary in the International Financial Services Centre (IFSC) located in GIFT City, Gujarat. This move is seen as a significant milestone for IREDA, as it aims to expand its global presence and spearhead innovative solutions for green financing. The subsidiary will also serve as an offshore platform for securing competitive funding to support the growth of the renewable energy sector, in line with the government’s ambitious ‘Panchamrit’ targets.

The Market Reaction

Despite the positive news of IREDA’s expansion plans, the company’s stock price has been experiencing a downward trend. In the last three days, the stock has fallen by 14.24%. On Friday, it dropped by 5% to reach a lower price band of Rs 179.55. However, it is important to note that IREDA’s stock has rallied significantly since its initial public offering (IPO) in November last year, with a staggering 461.09% increase.

Technical Analysis and Expert Opinions

Technical analysts have expressed bearish sentiments regarding IREDA’s stock. The major support level is expected to be around Rs 170, while resistance is predicted near the Rs 200 zone. Experts have suggested that IREDA might consolidate in the near term around the Rs 180 zone before potentially gaining momentum again. However, if the stock breaches the Rs 168 zone decisively, it could indicate a weak trend.

Why the Stock Might be Falling

There could be several reasons behind the recent decline in IREDA’s stock price. Market dynamics, investor sentiment, and external factors can all influence the performance of a company’s stock. It is essential to consider these factors when analyzing the stock market.


Q: What is IREDA?
A: IREDA, or the Indian Renewable Energy Development Agency Ltd, is a state-run financier that focuses on providing financial products and services for renewable energy projects.

Q: What is the significance of IREDA’s expansion plans?
A: IREDA’s expansion plans, particularly the establishment of its wholly-owned subsidiary in the IFSC in GIFT City, Gujarat, will enable the company to expand its global footprint and secure competitive funding for the growth of the renewable energy sector.

Q: Why has IREDA’s stock price been falling?
A: While IREDA’s recent decline in stock price might be concerning, it is important to consider market dynamics, investor sentiment, and other external factors that could be influencing its performance.


IREDA’s recent approval to set up a wholly-owned subsidiary in GIFT City, Gujarat, marks a significant milestone for the company. Despite this positive news, the stock has been experiencing a downward trend in the market. Technical analysts have expressed bearish sentiments, highlighting key support and resistance levels. However, it is crucial to consider various factors that can influence the stock market and affect a company’s stock price. Investors and analysts will continue to monitor IREDA’s performance closely to better understand the reasons behind its recent fall.

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