IREDA IPO: State-Run NBFC To Open Rs 2,150 Crore Public Offer Next Week; 10 Key Points

IREDA IPO: The state-run NBFC is set to launch its initial public offering (IPO) next week on November 21. Subscriptions will be allowed till November 23. The proposed equity shares in the IPO will be listed on stock exchanges BSE and NSE. Indian Renewable Energy Development Agency (IREDA) is looking to raise Rs 2,150.21 crore through this issue.

Here are 10 key points of the IPO:

1. The IPO comprised a fresh issue of up to 403,164,706 equity shares, and an offer for sale of up to 268,776,471 equity shares. Overall, the IPO size is up to 671,941,177 equity shares. The promoter-selling shareholder in the OFS will be the President of India acting through the Ministry of New and Renewable Energy, Government of India

2. The company fixed price bands at the lower end of Rs 30 and the upper end of Rs 32 per share. The bid lot size is up to 460 shares and in multiples of thereof.

3. At the upper price band, the fresh issue is worth Rs 1,290.13 crore and the offer for sale is worth Rs 860.08 crore.

4. Of the total size, 50% of the offer will be reserved for qualified institutional buyers (QIBs), while 15% of the offer will be kept for non-institutional investors, and the rest of 35% will be allocated to retail individual bidders.

5. The IPO will open for the public on November 21 and will be available for subscription till November 23. However, bidding will be opened for anchor investors on November 20.

6. Companies like IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets are acting as the book-running lead managers of the IPO. Link InTime is the registrar of the issue.

7. The proceeds from the fresh issue will be used for augmenting the company's capital base to meet its future capital requirements and onward lending.

8. Post the IPO, the basis of allotment of shares is expected to take place on November 29, while refunds will be initiated on November 30, and shares will likely be credited in demat accounts by December 1st. As per Chittorgarh, the listing is expected on December 1, 2023.

9. Among its business strategies, IREDA plans to continue launching financing products to meet the evolving needs of RE developers. Also, it intends to pursue a state-focussed business development strategy leveraging its relationship with state governments to originate RE projects across India. Further, the company will continue to leverage its advisory services and relationship with the GoI to originate projects with other public sector entities, such as the MoUs it has entered into with NHPC Limited, and SJVN Limited, among others, to provide techno-commercial advisory services. Additionally, IREDA anticipates potentially higher yield loan assets in new and emerging spaces, which is likely to benefit its results of operations.

10. IREDA aims to maintain a robust asset book in new and emerging areas through a dual approach of adopting a data-informed and comprehensive appraisal process, as well as a systematic monitoring mechanism that can track key risk indicators. Furthermore, IREDA is India's largest pure-play green financing NBFC and it intends to leverage this position to raise green or sustainable bonds in international and domestic markets.

IREDA is a wholly-owned government enterprise with over 36 years of experience in the business of promoting, developing and extending financial assistance for new and renewable energy ("RE") projects, and energy efficiency and conservation ("EEC") projects. The company provides a comprehensive range of financial products and related services, from project conceptualisation to post-commissioning, for RE projects and other value chain activities, such as equipment manufacturing and transmission.