The initial public offering of Indian Renewable Energy Development Agency Ltd was subscribed nearly 39 times on the closing day of the issue opening on Thursday. The IPO, which saw a strong response in the first two days, continued to attract investors on the last day, too.
The offer received bids for 1,827.25 crore shares against 47.09 crore shares on offer. The category for non-institutional investors was subscribed 24.16 times, while the portion for retail investors received bids for 7.73 times. The quota for qualified institutional buyers (QIBs) saw a strong response by subscribing 104.57 times and that of employees by 9.80 times.
The issue came out with a price band of ₹30-32. The size of the IPO was ₹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.
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As part of the IPO process, on November 20, IREDA had raised ₹643.26 crore from anchor investors by deciding to allot 20.10 crore shares at ₹32 a share, including 13 mutual funds.
The main objectives of the issue are to augment its capital base for future capital requirements and onward lending.
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). IREDA 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.