IREDA Unveils IPO Details: Check out the Price Band, Subscription Period, and Allocation Breakdown

21 Nov 2023 , 06:32 AM

IREDA is a Government of India enterprise under the Ministry of New and Renewable Energy. 

IREDA is India’s largest green financing NBFC with a diverse portfolio worth Rs 47,206.66 crore across 23 states and 5 UTs. These Fund-based products include long-term, medium-term, and short-term loans, top-up loans, bridge loans, and lines of credit to NBFCs. IREDA’s Standalone revenue for fiscal year 2023 increased by 21.75% to Rs 3,481.97 crore.

IREDA’s IPO is the first by a public sector enterprise since LIC’s issue in May 2022.

IPO Details: 

Indian Renewable Energy Development Agency (IREDA) IPO price band is fixed between Rs 30 and Rs 32 per equity share with a face value of Rs 10. Fresh issue of up to 403.16 million shares and an offer for sale of up to 268.78 million equity shares by the Ministry of New and Renewable Energy. Proceeds from the fresh issue will be used to augment capital base for future requirements and onward lending.

Subscription period: November 21 to November 23; allocation to anchor investors on November 20.

Floor Price: The floor price is 3 times the face value, and cap price is 3.20 times the face value.

Price/earnings ratio based on diluted EPS for fiscal 2023: 7.94 times (floor) and 8.47 times (cap).

IPO size: Rs 2,150.21 crore.

Lot size: 460 equity shares, with multiples of 460 shares thereafter.

Share allocation: 50% to Qualified Institutional Buyers (QIB), 15% to Non-Institutional Investors (NII), and 35% for Retail Investors.

Appointed managers to the issue: IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd.

For feedback and suggestions, write to us at [e-mail]