IREDA IPO Opens On 21 November, Price Band At Rs 30-32
The Indian Renewable Energy Development Agency (IREDA), a public sector enterprise has announced its maiden public issue, scheduled for subscription starting 21 November.
The price band has been fixed in the range of Rs 30 to Rs 32 per equity share of face value of Rs 10.
This marks the fourth initial public offering (IPO) this month, following ESAF Small Finance Bank, Protean eGov Technologies, and ASK Automotive.
The anchor book will be initiated on 20 November and conclude on 23 November. The pricing details for the offer will be disclosed later this week.
The IPO, comprising 67.19 crore shares, includes a fresh issue of 40.32 crore equity shares by the company and an offer-for-sale of 26.88 crore shares by the Government of India. Additionally, 18.75 lakh equity shares have been reserved for IREDA employees.
The minimum price for the equity shares is set at three times their face value, while the maximum price is established at 3.20 times the face value. The price-to-earnings ratio, calculated using diluted earnings per share for the fiscal year 2023, is 7.94 times the floor price and 8.47 times the cap price.
The lot size for the IREDA IPO is 460 equity shares, with multiples available in increments of 460 equity shares thereafter.
Half of the net issue size is earmarked for qualified institutional buyers, 15 per cent for high net worth individuals, and the remaining 35 per cent for retail investors.
IREDA, recognised as an infrastructure finance company, specialises in providing financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects.
The net proceeds from the fresh issue will primarily be utilised to strengthen IREDA's capital base to meet future requirements and support lending activities. As a government-owned non-banking financial company (NBFC), IREDA is obligated to maintain a capital-to-risk-weighted asset ratio (CRAR) of 15 per cent.
With over 36 years of experience, IREDA recorded a remarkable 58 per cent Compound Annual Growth Rate (CAGR) in net profit from FY21 to FY23, reporting a profit of Rs 864.63 crore in FY23 and Rs 294.6 crore in Q1 FY24.
The basis of allotment for IPO shares will be finalised by November 28, and equity shares will be credited to successful investors' demat accounts by November 29. Trading in equity shares is set to commence on December 1, following the IPO schedule's T+6 timeline.
IDBI Capital Markets & Securities, BOB Capital Markets and SBI Capital Markets served as the merchant bankers for the issue, with Link Intime India acting as the offer's registrar.
