IREDA IPO Day 1: Issue subscribed 1.95 times, retail portion booked 1.97 times

The Rs 2,150.21-crore IPO of the Indian Renewable Energy Development Agency (IREDA) was subscribed 1.95 times on November 21, the first day of bidding, with bids coming in for 91.98 crore shares against the issue size of 47.09 crore.

Retail investors bought 1.97 times their quota of shares, non-institutional investors picked 2.73 times and qualified institutional buyers bid 1.34 times their allotted portion.

The 67.19-crore-share initial public offering comprises a fresh issue of 40.32 crore shares and an offer-for-sale of 26.88 crore shares by the government of India.

Ahead of the IPO, the Mini-Ratna government enterprise mopped up Rs 643.26 crore from 58 anchor investors on November 20. 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 is looking to raise Rs 2,150.21 crore through the offer, the price band for which has been fixed at Rs 30-32 a share.  The issue closes on November 23.

The company will use the proceeds to augment the capital base to meet capital requirements and onward lending. The company expects also to benefit from listing the shares on the stock exchanges.

IREDA recorded a 58 percent CAGR growth in net profit during FY21-FY23. The capital-to-risk weighted asset ratio (CRAR)  was 21.22 percent as of March 31, 2022, 18.82 percent as of March 31, 2023, and 20.92 percent as of September 30, 2023.

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