IREDA Gears Up for IPO with Strong Anchor Investor Backing; Raised Rs 643 Crore

21 Nov 2023 , 07:42 AM

Indian Renewable Energy Development Agency (IREDA), a government enterprise and Mini Ratna, is making significant strides in the renewable energy sector with a robust initial public offering (IPO). 

The company has successfully raised Rs 643.26 crore from 58 anchor investors, showcasing strong investor confidence. Notable names such as Goldman Sachs, Societe Generale, and domestic powerhouses like SBI Mutual Fund and HDFC Mutual Fund participated in the anchor book.

The impressive list of anchor investors includes global financial giants like Goldman Sachs, Societe Generale, and Integrated Core Strategies (Asia). Moon Capital Trading, Copthall Mauritius, and BNP Paribas Arbitrage also joined this stellar group. On the domestic front, leading mutual funds and insurance firms, such as SBI Mutual Fund, HDFC Mutual Fund, and LIC MF, demonstrated their faith in IREDA’s potential.

IREDA, in collaboration with merchant bankers, has allocated 20,10,19,726 equity shares to anchor investors at a price of Rs 32 per share. The IPO, with a price band set at Rs 30-32 per share, is poised to open from November 21-23.

IPO Structure: 

The IPO comprises a fresh issue of 40.31 crore equity shares worth Rs 1,290.13 crore, emphasizing IREDA’s commitment to future growth. Additionally, the Government of India will undertake an offer-for-sale (OFS) of 26.87 crore shares worth Rs 860.08 crore. A noteworthy aspect is the allocation of 18,75,420 equity shares reserved for employees, contributing to a well-rounded IPO structure.

Financial Strength and Diversified Portfolio: 

IREDA’s financial performance is noteworthy, boasting a 15% Compound Annual Growth Rate (CAGR) in revenue and a substantial 58% CAGR in profits during FY21-23. The company maintains a diversified asset book, with solar energy accounting for 30% of revenue, wind power at 19%, loans to state utilities comprising 24%, and hydropower contributing 12%.