The initial public offering of Indian Renewable Energy Development Agency Ltd saw a strong response on Day 1 itself of issue opening on Tuesday by subscribing nearly two times.
The issue comes out with a price band of ₹30-32 and closes on November 23 (Thursday). The size of the IPO is ₹2,150.21 crore - a fresh issue of 40.32 crore shares aggregating to ₹1,290.13 crore and an offer for sale (OFS) of 26.88 crore shares worth ₹860.08 crore. The lot size is 460 shares.
IREDA has reserved not more than 50 per cent of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15 per cent for Non-Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for Retail Investors.
IREDA IPO: Should you subscribe?
Subscription details
The IPO of the state-owned Indian Renewable Energy Development Agency was fully subscribed 1.95 times
The IPO received bids for 91.98 crore shares against 47.09 crore shares on offer. The category for non-institutional investors was subscribed 2.73 times, while the portion for retail individual investors (RIIs) received 1.97 times subscription. The quota for qualified institutional buyers (QIBs) was subscribed 1.34 times.
Anchor investors
As part of the IPO process, on November 20, the IREDA raised Rs 643.26 crore from anchor investors. The company will allot 20.10 crore equity shares at ₹32 to the anchor investors, including 13 mutual funds.
Among anchor investors are SBI Banking & Financial Services Fund, HDFC Mutual Fund, ICICI Prudential Midcap Fund, Nippon Life India AMC, Kotak India Equity Contra Fund, Aditya Birla Sunlife Mutual Fund, Goldman Sachs (Singapore), DSP Tax Saver Fund, BNP Paribas Arbitrage, Societe Generale, Gam Star Emerging Equity, White Oak Midcap Fund, Sundaram Mutual Fund, Copthall Mauritius Investment and others.
Issue objective
The main objectives of the issue are to augment its capital base for future capital requirements and onward lending.
IDBI Capital Market Services, Bob Capital Markets and SBI Capital Markets are the book-running lead managers of the IREDA IPO, while Link Intime India Private Ltd is the IPO registrar.
About IREDA
Indian Renewable Energy Development Agency is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). The Indian Renewable Energy Development Agency provides funding for projects in several renewable energy sectors, including waste-to-energy, compressed biogas, ethanol, solar power, wind, hydropower, gearbox, biomass, hybrid RE, EEC, and green mobility.