IREDA IPO Opens Today: All Categories Oversubscribed, Check Latest GMP, Lot Size; Should You Subscribe

The initial public offering (IPO) of the Indian Renewable Energy Development Agency (IREDA) has opened for subscription today (November 21). The Rs 2,150.21 crore IREDA IPO will close for subscription on November 23, 2023. The IPO of IREDA sailed through on day 1 of the bidding process. By the time of writing this update, IREDA IPO was subscribed 1.26 times around 1.50 pm.

The retail category was subscribed 1.28 times, non-institutional investors picked 1.30 times their allotted portion and the qualified institutional buyer (QIBs) portion received 1.21 times bids. The employee portion was also completely subscribed at 1.21 times.

The IPO comprises a fresh issue of 40.32 crore shares and an offer-for-sale of 26.88 crore shares by the government of India. The company is looking to raise Rs 2,150.21 crore via the issue. One should note that the IPO of IREDA is the first IPO by a government-owned company since LIC hit the market in May last year.

Ahead of the IPO launch, the company's shares were trading at a premium of Rs 7 in the unlisted market. The IREDA IPO has a price band of Rs 30-32. Before the IPO launch, on November 20, the Mini-Ratna government enterprise raised Rs 643.26 crore from 58 anchor investors. Marquee names that participated in the anchor book include Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Moon Capital Trading, and Copthall Mauritius.

IREDA IPO Price Band:

The price band for the issue has been fixed at Rs 30-32 a share.

At the upper price band, the IREDA is valued at Rs 8,600 crore. As of now, the government owns a 100% stake in the firm.

The company intends to utilize the net proceeds to increase the capital base to meet future capital requirements and onward lending. The company expects to receive the benefits of listing the equity shares on the Indian bourses.

IREDA IPO GMP:

According to market observers, IREDA shares are trading at a premium of Rs 7 in the unlisted stock market today. IREDA IPO GMP today is signaling a nearly 22% listing gain for the allottees. However, allottees will get shares of the company through the allotment process after applying for the issue.

IREDA IPO Important Dates:

The IPO will close on November 23, 2023. The IREDA shares may list on Indian bourses on November 28. In the wake of T+3 schedule, the tentative date for finalization of share allocation is either November 24 or November 27, 2023.

IREDA IPO Lot Size:

Investors can place bids for a minimum of 460 equity shares and multiples of 460 thereafter. Hence the minimum investment by retail investors would be Rs 13,800 (460 (Lot size) x 30. At the upper end, the bidding amount will rise to Rs 14,720.