IREDA IPO Opens on November 21, Price Band Set at ₹30-32 Per Share

The Indian Renewable Energy Development Agency (IREDA), a state-run financial institution supporting renewable energy and energy efficiency projects, has announced the details of its upcoming initial public offering (IPO). The IPO is set to open on November 21, with a price band of ₹30-32 per share.

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IREDA’s IPO will comprise a fresh issue of up to 403.16 million shares and an offer for sale (OFS) of up to 268.78 million shares by the Government of India. At the upper price band, the company is poised to raise approximately ₹1,290 crore through the fresh issue and ₹860 crore through the OFS, valuing the firm at ₹8,600 crore. Currently, the government holds a 100 percent stake in IREDA.

The basis of allotment for the IPO will be determined on November 23, and the initiation of refunds is scheduled for November 28. The firm is set to list on stock exchanges on December 1, 2023. The anchor book for the IPO will open on November 20.

Also See: Upcoming IPO in India

IREDA intends to utilize the proceeds from the fresh issue to bolster its capital base, enabling it to meet future capital requirements and support its lending activities. As of September 2023, the company’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at a robust 20.92 percent.

Founded 36 years ago, IREDA plays a pivotal role in financing and promoting renewable energy and energy-efficient projects in India. The institution offers a comprehensive range of financial products and services, spanning project planning to post-commissioning stages, including equipment manufacturing and transmission.

For the six months ending in September 2023, IREDA reported a total income of ₹2,320.46 crore, a significant increase from ₹1,577.75 crore recorded during the same period the previous year. The net profit for the half-year period reached ₹579.32 crore, up from ₹410.27 crore in the previous year. Additionally, the gross and net Non-Performing Asset (NPA) ratios improved to 3.13 percent and 1.65 percent, respectively, down from 5.06 percent and 2.72 percent. The provision coverage ratio stood at a healthy 48.11 percent.

Leading financial institutions, including IDBI Capital, BoB Caps, and SBI Caps, have been appointed as the lead managers to the IREDA IPO, further underscoring the significance of this offering in India’s renewable energy sector.

Investors and stakeholders are eagerly anticipating the IREDA IPO as it marks a significant milestone in the country’s transition towards cleaner and more sustainable energy solutions.

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