IREDA IPO opens on November 21, price band set at ₹30-32 per share

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The floor price is 3 times the face value of the equity shares and the cap price is 3.20 times the face value of the equity shares. The price/earnings ratio based on diluted EPS for fiscal 2023 at the floor price is 7.94 times and at the cap price is 8.47 times. IREDA IPO lot size is 460 equity shares and in multiples of 460 equity shares thereafter.

IREDA IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

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Indian Renewable Energy Development Agency Limited (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE), according to Red-herring prospectus (RHP).

The company’s listed industry peers are REC Ltd (with P/E of 7.71), and Power Finance Corporation (with P/E of 4.79), as per the RHP. 

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IREDA IPO details

Indian Renewable Energy Development Agency’s IPO is first by a public sector enterprise after Life Insurance Corp.’s issue in May 2022.

The IPO will comprise a fresh issue of up to 403.16 million shares and an offer for sale (OFS) of up to 268.78 million equity shares by the President of India, acting through the ministry of new and renewable energy. The offer includes a reservation for subscription by employees.

According to the RHP, the proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.

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“The main objects and objects incidental and ancillary to the main objects set out in the Memorandum of Association enable us: (i) to undertake our existing business activities; and (ii) to undertake the activities proposed to be funded from the Net Proceeds. Further, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including to enhance our brand image among our existing and potential customers and creation of a public market for the Equity Shares in India,” said the company in its RHP.

The company has appointed IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd as managers to the issue.

IREDA is India’s largest dedicated green financing non-banking financial company (NBFC). It has a diverse investment portfolio worth ₹47,206.66 crore, spanning 23 states and 5 UTs. IREDA’s fund-based products are long-term, medium-term, and short-term loans, top-up loans, bridge loans, takeover financing, loans secured against future cashflows, and lines of credit to NBFCs.

For the fiscal year 2023, the standalone revenue from operations increased a 21.75% to ₹3,481.97 crore against ₹2,859.90 crore a year ago, primarily due to the growth of its Term Loans Outstanding in Fiscal 2023.

Also Read: IREDA files papers for IPO

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Updated: 14 Nov 2023, 11:10 AM IST