IREDA IPO to open on November 21; check price band, lot size and other details

The initial public offering (IPO) by Indian Renewable Energy Development Agency (IREDA) will open for subscription on Tuesday, November 21. The PSU miniratna would be offering its shares in the range of Rs 30-32 apiece. The lot size stands at 460 equity shares. The three-day bidding process will conclude on Thursday, November 23.

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

IREDA is looking to raise Rs 2,150.21 crore via its primary stake sale, which includes a fresh share sale component of Rs 1,290.13 crore and the Government of India through the Ministry of New and Renewable Energy will offload 268,776,471 equity shares aggregating up to Rs 860.08 crore. Anchor book for the issue will open on Monday, November 20.

The net proceeds from the fresh issue shall be utilised towards augmenting the capital base to meet future capital requirements and onward-lending and the company expects to receive the benefits of listing the Equity Shares on the stock exchanges.

In FY 2021-22, IREDA achieved the highest-ever loan sanctions of around Rs 23,921 crore and loan disbursements of around Rs 16,071 crore. It offers a comprehensive range of financial products and related services, from project conceptualization to post-commissioning, for RE projects and other value chain activities such as equipment manufacturing and transmission.

For the period ended September 30, 2023, IREDA reported a standalone net profit of Rs 579.32 crore, with a revenue of Rs 2,320.46 crore. The company reported a bottomline of Rs 864.63 crore with a revenue of Rs 3,483.04 crore in the financial year 2022-23.

The company has reserved 50 per cent of issue for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of shares allocated for them. The remaining quota of 35 per cent shall be set aside for the retail investors for the issue.

IDBI Capital Market Services, BoB Capital Markets and SBI Capital Markets are the book-running lead managers to the issue, while Link Intime India Private has been appointed as the registrar. Shares of the company will be listed on both stock exchanges, namely BSE and NSE.

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