BackIndian Renewable Energy Development Agency IPO opens: GMP, subscription status, issue details, 10 key things to know
IREDA IPO opens for subscription on November 21 with a price band of ₹30 to ₹32 per equity share. The IPO comprises a fresh issue of up to 40.32 crore shares and an offer for sale of up to 26.88 crore equity shares by the President.
PremiumIndian Renewable Energy Development Agency IPO (IREDA IPO) has opened for subscription today (Tuesday, November 21). Indian Renewable Energy Development Agency Limited (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE), according to Red-herring prospectus (RHP).
The company's listed industry peers are REC (with P/E of 7.71), and Power Finance Corporation (with P/E of 4.79), as per the RHP.
A financial institution with over 36 years of experience, IREDA develops, promotes, and provides financial support for new and renewable energy (RE) projects as well as energy efficiency and conservation (EEC) projects.
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The Indian Renewable Energy Development Agency has provided funding for projects in a number of renewable energy sectors, including waste-to-energy, compressed biogas, ethanol, solar power, wind, hydropower, gearbox, biomass, hybrid RE, EEC, and green mobility. Additionally, IREDA has provided a full range of fund-based and non-fund-based financial products and services.
Apart from offering financial products and services, the company also owns a 50 MW solar photovoltaic project located at Kasaragod Solar Park in Kerala, as mentioned in the RHP.
On the financial front, as of September 30, 2023, IREDA had an outstanding portfolio of diversified term loans totaling ₹47, 514.48 crore. Total income for Fiscal 2021, 2022, 2023, and the six months ended September 30, 2022, and September 30, 2023, respectively, was ₹2657.74 crore, ₹2874.16 crore, ₹3,483.04 crore, ₹1577.75 crore, and ₹2320.46 crore; this represents a CAGR of 14.48% between Fiscal 2021 and Fiscal 2023.
The profit after tax for the fiscal years 2021, 2022, and 2023 was ₹346.38 crore, ₹633.53 crore, ₹864.63 crore, ₹410.27 crore, and ₹579.32 crore, respectively. This represents a compound annual growth rate (CAGR) of 57.99% between Fiscal 2021 and Fiscal 2023. Additionally, the gross non-performing assets (NPAs) as a percentage of outstanding term loans decreased from 8.77% as of March 31, 2021 to 5.21% as of March 31, 2022, 5.06% as of September 30, 2022, 3.21% as of March 31, 2023, and 3.13% as of September 30, 2023, as per RHP.
Also Read: IREDA IPO: PSU raises ₹643 crore from anchor investors ahead of the issue opening
IREDA IPO subscription status
Indian Renewable Energy Development Agency IPO subscription status on day 1 is 1.96 times, according to data available on BSE. IREDA IPO retail investors portion has been subscribed 1.97 times, Non Institutional Investors (NII) portion has been subscribed 2.73 times, and Qualified Institutional Buyers (QIB) portion is booked 1.34 times. The employee portion has been booked 2.11 times.
Also Read: IREDA IPO opens on November 21, price band set at ₹30-32 per share
Here are the 10 key things to know about Indian Renewable Energy Development Agency IPO:
IREDA IPO date: IREDA IPO opening date of subscription is scheduled on Tuesday, November 21, and closes on Thursday, November 23.
IREDA IPO price band: IREDA IPO price band has been fixed in the range of ₹30 to ₹32 per equity share of face value of ₹10.
IREDA IPO lot size: IREDA IPO lot size is 460 equity shares and in multiples of 460 equity shares thereafter.
IREDA IPO Anchor investor date: The allocation to anchor investors for Indian Renewable Energy IPO is scheduled to take place on Monday, November 20.
IREDA IPO details: The IPO will comprise a fresh issue of up to 40.32 crore shares and an offer for sale (OFS) of up to 26.88 crore equity shares by the President of India, acting through the ministry of new and renewable energy. The offer includes a reservation for subscription by employees. IREDA IPO size is ₹2,150.21 crore.
IREDA IPO objectives: According to the RHP, the proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
“The main objects and objects incidental and ancillary to the main objects set out in the Memorandum of Association enable us: (i) to undertake our existing business activities; and (ii) to undertake the activities proposed to be funded from the Net Proceeds. Further, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including to enhance our brand image among our existing and potential customers and creation of a public market for the Equity Shares in India," said the company in its RHP.
Also Read: IREDA files papers for IPO
IREDA IPO Promoters: The President of India acting through the Ministry of New and Renewable Energy, Government of India. The Promoter, along with its seven nominees, currently holds 100.00% of the pre-offer paid-up equity share capital of the company, as per RHP.
Lead Manager and Registrar of IREDA IPO: The registrar for the IREDA IPO is Link Intime India Private Ltd, and the book running lead managers are IDBI Capital Market Services Limited, Bob Capital Markets Limited, and SBI Capital Markets Limited.
IREDA IPO reservation: IREDA IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
IREDA IPO GMP today: IRDEA IPO grey market premium is +6. This indicated IRDEA share price today are trading at a premium of ₹6 in the grey market on Tuesday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of IRDEA share price was indicated at ₹38 apiece, which is 18.75% higher than the IPO price of ₹32.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Also Read: Indian Renewable Energy Development Agency files draft paper for IPO
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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