IREDA IPO subscribed 38.80 times

Published on Nov 23, 2023 17:37

The initial public offer (IPO) of Indian Renewable Energy Development Agency (IREDA) received bids for 18,27,25,26,640 shares as against 47,09,21,451 shares on offer, according to stock exchange data at 17:33 IST on Thursday (23 November 2023). The issue was subscribed 38.80 times.

The issue opened for bidding on Tuesday (21 November 2023) and it will close on Thursday (23 November 2023). The price band of the IPO is fixed at Rs 30-32 per share. An investor can bid for a minimum of 460 equity shares and in multiples thereof.

The offer consists of fresh issue of 40.32 crore equity shares and an offer for sale of 26.88 crore equity shares.

The promoter and promoter group shareholding would decline to 75% post- IPO from 100% pre-IPO.

The company proposes to utilize the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements and onward lending. The company expects to receive the benefits of listing the equity shares on the stock exchanges, including to enhance brand image among existing and potential customers and creation of a public market for the equity shares in India.

Ahead of the IPO, IREDA on Monday, 20 November 2023, raised Rs 643.26 crore from anchor investors. The board allotted 20.10 crore shares at Rs 32 each to 58 anchor investors.

IREDA is a financial institution with over 36 years of experience in the business of promoting, developing, and extending financial assistance for new and renewable energy (RE) projects, and energy efficiency and conservation (EEC) projects. It provides a comprehensive range of financial products and related services, from project conceptualisation to post-commissioning, for RE projects and other value chain activities, such as equipment manufacturing and transmission.

IREDA is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (the MNRE). It is also conferred with the Mini Ratna (Category-I) status.

The firm reported a net profit of Rs 579.32 crore and net sales of Rs 2,285.69 crore for the six months ended on 30 September 2023.