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Business News/ Markets / Ipo/  IREDA IPO: What do GMP, subscription status suggest ahead of listing?
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IREDA IPO: What do GMP, subscription status suggest ahead of listing?

The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) witnessed a robust response from investors during its bidding process.

The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) witnessed a robust response from investors during its bidding process. (Photo: Courtesy company website)Premium
The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) witnessed a robust response from investors during its bidding process. (Photo: Courtesy company website)

The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) witnessed a robust response from investors during its bidding process.

The IPO concluded on Thursday, November 23, and the share allotment was finalised on Saturday, November 25. The company's equity shares are likely to be listed on stock exchanges BSE and NSE on November 29.

Ahead of the IPO listing, let us check what the GMP and subscription status show:

IREDA IPO GMP

Analysts note a robust investor response to the IREDA IPO, suggesting that the surge in grey market sentiment may be attributed to the strong reception.

IREDA IPO GMP or grey market premium today is 10 per share, the same as yesterday and the day before. This indicates the IREDA share price is likely to list at a premium of 31.23 percent at 42. However, the GMP has reduced from 12 and 11 on November 23 and November 24, respectively. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.

Read here: Why Tata Technologies IPO applicants should apply for IREDA IPO too — explained

IREDA IPO subscription status

IREDA IPO has been subscribed to 38.80 times during its 3-day bidding process. The public issue received bids for 1,827 crore shares against 47.09 crore shares on offer.

The Qualified Institutional Buyers (QIB) quota was booked the most, 104.57 times, followed by the Non-Institutional Investors’ (NII) portion, which was subscribed to 24.16 times. Meanwhile, the retail investor category was bid 7.73 times and the employee portion was booked 9.8 times.

IREDA IPO details

The 2,150.21 crore IPO of the PSU was open for subscription between November 21 and November 23 and the price band for the offer was set at 30-32 per share.

Indian Renewable Energy Development Agency is a government company, which has a ‘miniratna’ status (Category-I). Incorporated in 1987, IRDEA is an experienced financial institution that has been actively promoting, developing, and extending financial assistance for new and renewable energy projects.

The issue comprises of a fresh share sale worth 1,290.13 crore and an offer for sale (OFS) by the Government of India for 268,776,471 equity shares aggregating up to 860.08 crore. The net proceeds from the fresh issue shall be utilised towards augmenting the capital base to meet future capital requirements and onward lending.

The firm has also raised 643.26 crore from 58 anchor investors including Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Moon Capital Trading, and Copthall Mauritius participated in the anchor book.

BoB Capital Markets, IDBI Capital Market Services and SBI Capital Markets are the book-running lead managers to the issue, while Link Intime India Private has been appointed as the registrar

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Published: 27 Nov 2023, 11:35 AM IST
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