IREDA IPO opens November 21: All you need to know
Indian Renewable Energy Development Agency (IREDA) is preparing to launch an initial public offering (IPO) valued at Rs. 2,150 crore on November 21. The IPO of the government-owned non-banking financial company consists of a fresh issue of Rs. 1,290 crore and an offer for sale (OFS) worth Rs. 860 crore. As a prominent name in the renewable energy sector, IREDA focuses on promoting, developing, and providing financial support for renewable energy projects and energy efficiency and conservation initiatives in India.
Key dates and listing details
From November 21 to November 23, investors can subscribe to the IREDA IPO. Share allocation is likely to be confirmed by November 29. Refunds for unsuccessful applicants will be processed by November 30. Those who secure shares can expect them to be credited to their demat accounts by December 1. IREDA shares are expected to be listed on both the BSE and NSE around December 4.
Issue price, lot size, and book-running lead managers
For the IPO, the company's board has established a price range of Rs. 30-32 per share. Investors can bid for IREDA shares in lots of 460 shares, which equates to Rs. 13,800-14,720 per lot. IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets are managing the book-running lead for the issue, while Link Intime India serves as the registrar.
IREDA's role in renewable energy financing
As India's largest pure-play green financing company, IREDA offers an extensive array of financial products and related services for renewable energy projects and other value chain activities. The company boasts a geographically diverse portfolio, with outstanding term loans spread across 23 states and five union territories as of September 30. Additionally, IREDA provides lines of credit to other non-banking financial companies for lending to renewable energy and energy efficiency projects.
Financial performance and future prospects
For the six months ending September 2023, IREDA's revenue surged 47% to Rs. 2,320 crore, while profits rose by 41% to Rs. 579 crore. In FY23, the company's standalone revenue from operations climbed 22% to Rs. 3,482 crore, primarily driven by the growth of its term loans outstanding. Net profit soared 36% to Rs. 865 crore during the same period. The capital-to-risk-weighted asset ratio (CRAR) stood at 18.82% for FY23 and 19.95% for the June quarter.
