IREDA IPO Subscribed 4.56 Times on Second Day

22 Nov 2023 , 09:25 PM

The Indian Renewable Energy Development Agency (IREDA) witnessed a robust response on the second day of its Rs 2,150-crore initial public offering (IPO), with a subscription rate of 4.56 times. Investors demonstrated strong interest, bidding for 214.52 crore equity shares against the offer size of 47.09 crore shares. Click here to subscribe the IPO.

From the onset of the public issue, all investor categories actively participated, with high net-worth individuals subscribing 7.74 times their allotted quota and retail investors 4.25 times. Qualified institutional buyers showed a subscription rate of 2.69 times, while employees subscribed 4.97 times.

IREDA, a Mini Ratna government enterprise, has allocated 50% of the net issue size for qualified institutional buyers, 15% for high net-worth individuals, and the remaining 35% for retail investors. The net issue, excluding the employees’ portion of 18.75 lakh shares, constitutes the offering.

The public issue, comprising 67.19 crore equity shares, involves a fresh issue of 40.31 crore shares valued at Rs 1,290.13 crore and an offer-for-sale (OFS) of 26.87 crore shares worth Rs 860.08 crore by the Government of India, at the upper price band.

The price band for the IPO, concluding on November 23, is set at Rs 30-32 per share. IREDA, a state-owned financial institution specializing in providing financial assistance for new and renewable energy projects, along with energy efficiency and conservation projects, intends to utilize the net fresh issue proceeds to bolster its capital base for future capital requirements and onward lending.

Notably, the firm has already secured Rs 643 crore from anchor investors at the upper price band, constituting a significant portion of the total issue size.