Indian Renewable Energy Development Agency Set to Launch IPO with Price Band of ₹30 to ₹32 per Share

Indian Renewable Energy Development Agency (IREDA) IPO is scheduled to open for subscription from November 21 to November 23, with a price band set at ₹30 to ₹32 per share of face value ₹10. The floor price is three times the face value, and the stock price is 3.20 times the face value. The IPO size is 460 shares, with 460 shares thereafter.

IREDA has allocated 50% of the shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% for retail investors. As a wholly-owned Government of India enterprise under the Ministry of New and Renewable Energy (MNRE), IREDA’s IPO is the first in the sector since Life Insurance Corp.’s in May 2022.

The IPO includes 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 President of India, through the Ministry of New and Renewable Energy. Proceeds from the fresh issue will be used to increase capital for future needs and borrowing, according to the red-herring prospectus (RHP).

IREDA, India’s largest dedicated green finance non-banking financial company (NBFC), offers diverse investment portfolios totaling ₹47,206.66 crore across 23 states and 5 Union Territories. The company’s fund-based products include long-term, medium-term, and short-term loans, among others.

For the fiscal year 2023, IREDA reported a 21.75% increase in standalone operating income, reaching ₹3,481.97 crore compared to ₹2,859.90 crore in the previous year. The company has appointed IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd as issue managers.