IREDA looks to raise Rs2,150 through IPO priced at Rs30-32 a share
15 Nov 2023
State-run Indian Renewable Energy Development Agency’s (IREDA) Rs2,150-crore initial public offer (IPO) will open for subscription on Tuesday. The company has set a price band of Rs30-32 per share for the IPO.
IREDA, which supports renewable energy and energy efficiency projects, plans to issue up to 403.16 million new shares to raise around Rs1,290 crore. Besides, Government of India, which is currently the sole stakeholder, will offer up to 268.78 million shares in an offer for sale (OFS), to raise another Rs860 crore.
The subscription window will open on 21 November and will remain open till 23 November. After the closure of the subscription window, the issue managers will determine the allotment of shares and refunds to those not allotted shares by 28 November. IREDA is expected to make its market debut on 1 December.
IDBI Capital, BoB Caps, and SBI Caps are the issue managers and anchors.
IRDA plans to use funds raised from the IPO for strategic initiatives, including investment in equipment manufacturing and transmission infrastructure. IREDA also intends to strengthen its capital base to support future financing needs in the renewable energy sector.
IREDA reported a 54 per cent increase in profit after tax (PAT) at Rs285 crore for the fiscal second quarter. The company also saw remarkable growth in loan book and a significant reduction in net non-performing assets (NPAs) from 2.72 per cent to 1.65 per cent year-on-year.
