IREDA IPO opens tomorrow: GMP, issue details, 10 key things to know before you bid

The Indian Renewable Energy Development Agency (IREDA) is a financial institution in India that focuses on promoting and financing renewable energy projects. Established in 1987, IREDA plays a crucial role in facilitating the growth of renewable energy sources in the country. It provides financial assistance and loans for various renewable energy initiatives, including solar, wind, bioenergy, and hydroelectric projects. IREDA contributes significantly to India’s efforts to increase the share of clean and sustainable energy in its overall energy mix.

IREDA IPO is set to open for subscription on November 21, with a price band of ₹30 to ₹32 per equity share. The IPO includes a fresh issue of up to 40.32 crore shares and an offer for sale of up to 26.88 crore equity shares by the President of India.

IREDA, a Government of India enterprise under the Ministry of New and Renewable Energy, has over 36 years of experience in developing and financing renewable energy projects. The IPO aims to augment its capital base for future capital requirements and lending activities.

On the financial front, as of September 30, 2023, IREDA had an outstanding portfolio of diversified term loans totaling ₹47, 514.48 crore. Total income for Fiscal 2021, 2022, 2023, and the six months ended September 30, 2022, and September 30, 2023, respectively, was ₹2657.74 crore, ₹2874.16 crore, ₹3,483.04 crore, ₹1577.75 crore, and ₹2320.46 crore; this represents a CAGR of 14.48% between Fiscal 2021 and Fiscal 2023.

The profit after tax for the fiscal years 2021, 2022, and 2023 was ₹346.38 crore, ₹633.53 crore, ₹864.63 crore, ₹410.27 crore, and ₹579.32 crore, respectively. This represents a compound annual growth rate (CAGR) of 57.99% between Fiscal 2021 and Fiscal 2023. Additionally, the gross non-performing assets (NPAs) as a percentage of outstanding term loans decreased from 8.77% as of March 31, 2021 to 5.21% as of March 31, 2022, 5.06% as of September 30, 2022, 3.21% as of March 31, 2023, and 3.13% as of September 30, 2023, as per RHP.

Here are the 10 key things to know about IREDA IPO

IREDA IPO date: IREDA IPO opening date of subscription is scheduled on Tuesday, November 21, and closes on Thursday, November 23.

IREDA IPO price band: IREDA IPO price band has been fixed in the range of ₹30 to ₹32 per equity share of face value of ₹10.

IREDA IPO lot size: IREDA IPO lot size is 460 equity shares and in multiples of 460 equity shares thereafter.

IREDA IPO Anchor investor date: The allocation to anchor investors for Indian Renewable Energy IPO is scheduled to take place on Monday, November 20.

IREDA IPO details: The IPO will comprise a fresh issue of up to 40.32 crore shares and an offer for sale (OFS) of up to 26.88 crore 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. IREDA IPO size is ₹2,150.21 crore.

The IPO objectives include meeting future capital requirements and onward lending. The President of India, through the Ministry of New and Renewable Energy, is the promoter, holding 100% of the pre-offer paid-up equity share capital.

The IPO reservation allocates 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors.

IREDA IPO’s grey market premium is +7, indicating a premium of ₹7 in the grey market. With an estimated listing price of ₹39 apiece, which is 21.88% higher than the IPO price of ₹32, the grey market premium reflects investors’ readiness to pay more than the issue price.