IREDA IPO: The issuance comprises of a fresh issue of up to 403.16 million shares and a Government of India offer for sale (OFS) of up to 268.78 million shares.
- SUMMARY
- The Indian Renewable Energy Development Agency (IREDA) has established a price range of Rs 30-32 per share for its first public offering.
- The anchor book will be released on November 20, which is next Monday.
- The issuance comprises of a fresh issue of up to 403.16 million shares and a Government of India offer for sale (OFS) of up to 268.78 million shares.
The government-controlled Indian Renewable Energy Development Agency (IREDA) has established a price band of Rs 30-32 per share for its initial public offering, which will start on November 21 and finish on November 23. The anchor book will be released on November 20, which is next Monday.
According to a regulatory filing on Tuesday, the issue comprises 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. Currently, the government owns 100% of the company. The basis of allotment will be completed on November 23, with refunds beginning on November 28. On December 1, the company will go public on stock exchanges.
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The floor price is three times the equity shares’ face value, and the cap price is 3.20 times the equity shares’ face value. The price/earnings ratio based on diluted EPS for fiscal 2023 is 7.94 times the floor price and 8.47 times the cap price. The IREDA IPO lot size is 460 equity shares, and subsequent lots are in multiples of 460 equity shares.
On the higher price band, the state-owned corporation will raise around Rs 1,290 crore through a fresh issue and Rs 860 crore through an Offer for Sale (OFS). The company is valued at Rs 8,600 crore in the highest price range.
“The offer is for up to 67,19,41,177 equity shares with a face value of Rs 10 each (comprising a fresh issue of 40,31,64,706 equity shares and an offer to sell up to 26,87,76,471 equity shares).” On November 11, 2023, the RHP was filed with the Registrar of Companies in Delhi and Haryana. “The RHP has also been filed with SEBI and submitted to the NSE and BSE for publication on their respective websites,” according to the filing.
The IREDA IPO has reserved not more than 50% of the shares in the public issuance for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and not less than 35% for retail investors. The issue’s merchant bankers are IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets, while the offer’s registrar is Link Intime India.
“Additionally, in accordance with the applicable provisions of the SEBI ICDR Regulations, the Committee of Independent Directors, at their meeting on November 13, 2023, recommended the price band of Rs 30 per equity share (float price) to Rs 32 per equity share (cap price), determined by the quantitative factors and key performance indicators disclosed in the RHP (“Recommendation”), which was subsequently approved by the board of directors on November 13, 2023.”The recommendation has been included in the price band advertisement and accepted by the board on November 13, 2023, in accordance with the SEBI ICDR Regulations,” the document added.
Indian Renewable Energy Development Agency Limited was established in 1987 as a Mini Ratna Government of India Enterprise under the Government of India and is administratively overseen by the Ministry of New and Renewable Energy. The company reported total income of Rs 2,320.46 crore until September 2023, up from Rs 1,577.75 crore the previous year.
Its net profit for the first half of the year was Rs 579.32 crore, up from Rs 410.27 crore the previous year. Gross and net NPA for the half year were 3.13 percent and 1.65 percent, respectively, compared to 5.06 percent and 2.72 percent the previous fiscal year. The provision coverage ratio was 48.11 percent.
Frequently asked questions
Is Ireda a public company?
The Indian Renewable Energy Development Agency Limited (IREDA) was founded on March 11, 1987, as a Public Limited Government Company under the Companies Act, 1956, to promote, develop, and provide financial assistance for Renewable Energy and Energy Efficiency/Conservation Projects.
What is the share price of Ireda?
Today’s share price for Indian Renewable Energy Development Agency Ltd. is 1,190.00 (NSE) and 1,086.10 (BSE).
Where is the headquarters of Ireda?
Indian Renewable Energy Development Agency
| IREDA logo | |
|---|---|
| Abbreviation | IREDA |
| Headquarters | India Habitat Centre, East Court, Core-4A, 1st Floor, Lodhi Road, New Delhi – 11 00 03 |
| Website | https://www.ireda.in/ |
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