IREDA IPO day 2: Issue subscribed 2.58 times so far

22 Nov 2023 , 11:11 AM

The Initial Public Offering (IPO) of the Indian Renewable Energy Development Agency (IREDA) witnessed robust demand, with a subscription rate of 1.96 times on the first day of its opening on November 21. Click here to subscribe the IPO.

As of 11 AM on the second day, the IPO garnered bids for 1,21,64,96,680 equity shares surpassing the available 47,09,21,451 shares, subscribing 2.58 times, according to data from the BSE. Notable subscription rates include 2.68 times for the retail portion, 3.99 times for Non-Institutional Investors (NII), and 1.35 times for Qualified Institutional Buyers (QIB). The Employee portion demonstrated significant interest, with a subscription rate of 3.02 times.

The IREDA IPO has allocated shares strategically, reserving up to 50% for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and a minimum of 35% for Retail Investors.

As outlined in the Red Herring Prospectus (RHP), the proceeds from the fresh issue will be deployed to bolster IREDA’s capital base, ensuring readiness for future capital requirements and facilitating continued lending.

The President of India, acting through the Ministry of New and Renewable Energy, Government of India, serves as the Promoter of IREDA. Currently, along with its seven nominees, the Promoter holds 100.00% of the pre-offer paid-up equity share capital, as per the RHP.