IREDA Shares Debut with a Bang, Listing at a Premium of 56%

29 Nov 2023 , 09:52 AM

Shares of the state-owned Indian Renewable Energy Development Agency (IREDA) have made a strong debut on the BSE and NSE, listing at a premium of 56%. The shares opened at Rs 50, Rs 18 higher than the issue price of Rs 32.

This marks the first government company listing since Life Insurance Corporation of India in May 2022 and is also the first among the five IPOs that closed last week.

IREDA’s maiden public issue, which took place from November 21-23, was highly subscribed at 38.8 times. Qualified institutional buyers subscribed 104.57 times their allotted quota, high net-worth individuals subscribed 24.16 times, retail investors subscribed 7.73 times, and employees subscribed 9.8 times.

The state-run Mini Ratna non-banking financial company is currently available at a price-to-book-value of 1.2x, which experts consider to be at a discount compared to the average of its peers. The market capitalization at the issue price is approximately Rs 8,600 crore.