IREDA IPO: The IPO of state-owned Indian Renewable Energy Development Agency Ltd (IREDA) will open for public subscription tomorrow, November 21. The Rs 2,150.21 crore IPO will close on November 23. The price range has been fixed at Rs. 30-32 per equity share.
The IPO allotment will take place on November 29, while the listing of the shares may take place on December 4.
IREDA IPO GMP today
According to market observers, unlisted shares of IREDA were trading Rs 7 higher in the gray market compared to the issue price. The gray market premium of Rs 7 or GMP means that the gray market expects a listing gain of 21.88 percent from the public issue. The GMP is based on market sentiment and continues to change.
The ‘gray market premium’ indicates that investors are willing to pay more than the issue price.
IREDA IPO lot size
Investors can bid for a minimum of 460 shares and then in multiples of 460 shares. Therefore, the minimum investment by retail investors would be Rs 13,800 at a lower price band of Rs 30. At the higher end, the bid amount will increase to Rs 14,720.
IREDA IPO: Should You Subscribe?
Giving a ‘subscription’ recommendation, Sonam Srivastava, Founder and Fund Manager at Wright Research, said: “IREDA’s focus on renewable energy financing is timely and in line with the global shift towards sustainable energy. Being the first public company IPO since LIC, it has a certain credibility. The growth potential of the renewable energy sector is significant, but is also subject to policy changes and technological advances, which could impact IREDA’s performance.”
According to a living coin According to Atul Parakh, CEO of Bigul, Atul Parakh, CEO of Bigul said: “Among the five upcoming IPOs next week, state-owned IREDA will be on the radar of primary market investors as the IREDA IPO is expected to make good listing gains will yield and can also be a long-term gain. investment candidate.”
About IREDA IPO
The public issue with a face value of Rs 10 per equity share includes a fresh issue of up to 403.16 million shares and an offer for sale (OFS) of up to 268.78 million shares, amounting to a total of up to 671.94 million shares . company said.
The issue will raise Rs 2,015.82 crore and Rs 2,150.21 crore at the lower and upper end of the price range respectively, the company said. The company had reported a net profit of Rs 864.63 crore in FY23, against Rs 633.53 crore a year earlier, while net interest income rose to Rs 1,323.76 crore from Rs 1,128.04 crore a year ago.
The company is engaged in promoting, developing and expanding financial support for new and sustainable energy projects, and energy efficiency and conservation projects, and offers a comprehensive range of financial products and related services, from project conceptualization to post-commissioning, for sustainable energy projects and other value chain activities, such as equipment production and transmission.
It is also India’s largest pure-play green finance NBFC in India. The company has a geographically diversified portfolio, with outstanding term loans across 23 states and five Union Territories as of September 30, and has four strategically located offices in Mumbai, Hyderabad, Chennai and Bhubaneshwar to maximize its geographical reach in terms of territory.
The Capital to Risk-Weighted Asset Ratio (CRAR) stood at 18.82 percent for FY23 and for the six months ended September 30, it stood at 20.92 percent, the company said. For H1FY24, net interest income was Rs 785.42 crore, and profit after tax was Rs 579.31 crore. For the same period, IREDA approved total loans worth Rs 4,744.50 crore, the report said.
As of September 30, 2023, the company had a diversified portfolio of outstanding term loans worth Rs 47,514.48 crore. IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd and SBI Capital Markets Ltd are the lead managers of the issue.