IREDA IPO Open: GMP, Price, Date, Review, and More – Should You Apply?

The Indian Renewable Energy Development Agency (IREDA) is set to make its debut in the Indian primary market with an Initial Public Offering (IPO). With the IPO officially opening on November 21, 2023, and remaining open until November 23, 2023, investors are eager to learn more about this opportunity. In this blog, we’ll delve into the key details of the IREDA IPO, including its Grey Market Premium (GMP), pricing, lot size, allotment date, and expert opinions. By the end, you’ll have a better understanding of whether it’s worth applying for the IREDA IPO.

Also Read: Upcoming IPO in India

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IREDA IPO Details

  1. Grey Market Premium (GMP)

As of today, shares of IREDA are trading at a premium of ₹6 in the Grey Market, indicating a positive sentiment among market participants regarding the IPO’s potential. (See Current IREDA IPO GMP )

  1. IPO Date

The IREDA IPO opened for subscription on November 21, 2023, and will close on November 23, 2023. Investors have a limited window to participate in this offering.

  1. Price Band

IREDA has set the price band for its IPO at ₹30 to ₹32 per equity share. This range determines the price at which investors can purchase shares during the IPO.

  1. Lot Size

Investors can apply for shares in lots, with one lot consisting of 460 company shares. This information is crucial for determining the minimum investment required to participate in the IPO.

Also See: All IPO GMP Today

  1. IPO Size

IREDA aims to raise ₹2,150.21 crore through its initial public offering. This significant capital infusion will support the company’s future growth plans.

  1. Allotment Date

The tentative date for the finalization of share allocation is either November 24, 2023, or November 27, 2023, depending on the T+3 schedule. This means that investors can expect to know their allotment status shortly after the IPO closes.

  1. Investment Limit

Considering the price band of ₹30 to ₹32 per share and the lot size of 460 shares, the minimum investment required for a retail investor to apply for the IREDA IPO is ₹14,720 (₹32 x 460). Investors should assess their financial capacity before applying.

  1. Listing

IREDA intends to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing ample liquidity and accessibility to investors.

  1. Listing Date

The expected listing date for IREDA IPO shares is November 28, 2023. This is when investors can start trading these shares on the secondary market.

Also Read: Benefits and Risks of Investing in IPOs

IREDA IPO Review: To Apply or Not?

Now that we’ve covered the essential details, let’s turn our attention to expert opinions on whether you should consider applying for the IREDA IPO.

  1. Arun Kejriwal, Founder at Kejriwal Research and Investment Services, recommends a “subscribe” rating for the IPO. He highlights IREDA’s role as a nodal agency for renewable energy and its substantial assets under management (AUM) of ₹47,500 crores as of September 30, 2023. Additionally, IREDA boasts a healthy GNPA of 3.21% and NNPA of 1.66%. With a price-to-book ratio of 1.15-1.23 and an EPS of ₹3.78 for the year ending March 2023, the company offers attractive valuation metrics. Kejriwal also notes that IREDA compares favorably with other similar entities like PFC and REC, making it an appealing investment for both the short and medium term.
  2. Reliance Securities also gives the IREDA IPO a “subscribe” rating. They emphasize IREDA’s strategic role in promoting renewable energy in India, its diversified asset book, high-quality assets, and consistent profitability. Reliance Securities points out that IREDA has access to cost-effective long-term sources of borrowing, contributing to its profitability. With a strong growth outlook and an experienced management team, they recommend subscribing to the issue.
  3. Nirmal Bang suggests that diversification and expansion into emerging green technologies position IREDA for long-term sustainability and high growth in its loan book. They note the company’s demonstrated track record of growth, improvement in asset quality, and attractive valuation at 1.1x trailing price-to-book (post-issue). Nirmal Bang rates the issue as “Subscribe.”
  4. BP Equities, Choice Broking, and Swastika Investmart have also recommended investors to apply for the IREDA IPO, indicating widespread optimism in the market.

Conclusion

The IREDA IPO presents an opportunity for investors to participate in India’s renewable energy sector. With a positive Grey Market Premium, reasonable pricing, and endorsements from financial experts, the IPO appears attractive. However, as with any investment decision, it’s essential to conduct your own research and assess your risk tolerance before applying. If you believe in the growth potential of renewable energy in India and the prospects of IREDA as a key player in this sector, it may be worth considering this IPO for your investment portfolio. Remember to consult with a financial advisor if needed to make an informed decision.

Disclaimer: The information in this news is for informational purposes only and not financial advice. Investing in the IREDA IPO or any investment involves risks. Consult a financial advisor and conduct your research before making investment decisions.

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