IREDA Initiates Rs 2,150.21 Crore IPO Offering, Set to Open on November 21

15 Nov 2023 , 09:24 AM

Established in March 1987, the Indian Renewable Energy Development Agency Limited (IREDA) operates as a public limited government company and holds the status of a Mini Ratna (Category – I) government enterprise. 

Under the administrative jurisdiction of the Ministry of New and Renewable Energy (MNRE), IREDA is set to launch its Initial Public Offering (IPO) as a book-built issue with a total value of Rs 2,150.21 crores.

The IPO comprises a fresh issue of 40.32 crore shares, amounting to Rs 1,290.13 crores, and an offer for sale of 26.88 crore shares, totaling Rs 860.08 crores. Subscription for the IREDA IPO opens on November 21, 2023, and concludes on November 23, 2023. 

The allotment results are anticipated to be announced on Wednesday, November 29, 2023, with the listing scheduled for Monday, December 4, 2023, on both BSE and NSE.

The price band for the IREDA IPO is fixed at Rs 30 to Rs 32 per share, with a minimum lot size of 460 shares. Retail investors are required to make a minimum investment of Rs 14,720. 

The IPO reservation structure allocates not more than 50% of the Net Issue to Qualified Institutional Buyers (QIBs), not less than 35% to Retail investors, and not less than 15% to Non-Institutional Investors (NIIs) or High Net Worth Individuals (HNIs).

IREDA plans to utilize the net proceeds for augmenting its capital base to meet future capital requirements and for onward lending. Additionally, the company expects to derive benefits from listing its Equity Shares on the Stock Exchanges, including enhancing its brand image among existing and potential customers and establishing a public market for the Equity Shares in India.

The book running lead managers for the IREDA IPO are Idbi Capital Market Services Limited, Bob Capital Markets Limited, and SBI Capital Markets Limited, with Link Intime India Private Ltd serving as the registrar for the issue.