IREDA IPO receives stellar response on day 1. Issue gets fully subscribed, retail investors steal the show
- IREDA IPO opens today and will close on Thursday, November 23. IREDA IPO's grey market premium is +6, indicating a higher listing price of ₹38 per share.
IREDA IPO subscription status: Indian Renewable Energy Development Agency IPO has been subscribed 1.96 times on day 1. IREDA IPO has opened for subscription today (Tuesday, November 21), and will close on Thursday, November 23. 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 is 460 equity shares and in multiples of 460 equity shares thereafter.
Retail investors responded incredibly well to the IREDA IPO within the first two hours of it being available for subscription, and the portion that is fully booked. All of the portions were eventually oversubscribed on day 1.
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.
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On day 1, IREDA IPO's retail investors portion was subscribed 1.97 times, NII portion was subscribed 2.73 times, and Qualified Institutional Buyers (QIB) portion is booked 1.34 times. Employee portion has been subscribed 2.11 times.
IREDA IPO subscription status
IREDA IPO has received bids for 92,07,68,200 shares against 47,09,21,451shares on offer, according to data from the BSE.
Indian Renewable Energy Development Agency IPO retail investors' portion received bids for 46,26,47,300 shares against 23,45,23,015 shares on offer for this segment.
Indian Renewable Energy IPO's non-institutional investors' portion received bids for 27,42,36,820 shares against 10,05,09,864 on offer for this segment.
Indian Renewable Energy Development Agency IPO's Qualified Institutional Buyers (QIBs) portion received bids for 17,99,18,880 shares against 13,40,13,152 shares on offer for this segment.
Indian Renewable Energy IPO's employee portion received bids for 39,65,200 shares against 18,75,420 shares on offer for this segment.
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.
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.
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.
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 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.
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