IREDA IPO Oversubscribed by Nearly 2 Times on Day 1

21 Nov 2023 , 08:35 PM

The Initial Public Offering (IPO) of the Indian Renewable Energy Development Agency (IREDA), valued at Rs 2,150.21 crore, kicked off on November 21 with an impressive response from investors. The IPO, which closes on November 23, witnessed a subscription of 1.95 times on the first day, with bids pouring in for 91.98 crore shares against the issue size of 47.09 crore. Click here to subscribe the IPO.

Investor Participation: Retail investors exhibited strong interest, subscribing 1.97 times their allocated share quota. Non-institutional investors displayed even greater enthusiasm, oversubscribing by 2.73 times, while qualified institutional buyers bid 1.34 times their allotted portion.

IREDA’s IPO consists of 67.19 crore shares, comprising a fresh issue of 40.32 crore shares and an offer-for-sale of 26.88 crore shares by the Government of India. Prior to the IPO launch, the Mini-Ratna government enterprise secured Rs 643.26 crore from 58 anchor investors on November 20. Notable participants in the anchor book included prestigious names such as Goldman Sachs, Societe Generale, and BNP Paribas Arbitrage.

The funds raised through the IPO, with a price band of Rs 30-32 per share, will serve to bolster IREDA’s capital base, meeting capital requirements and facilitating onward lending. Additionally, the company anticipates reaping the benefits of listing its shares on the stock exchanges.