State-owned largest pure-play green financing NBFC Indian Renewable Energy Development Agency has closed its initial public offering with a robust subscription numbers. Hence, the participants in the offer are eager to know the basis of allotment of IPO shares, which was expected to be finalised by November 24.
The Rs 2,150-crore public issue was mix of fresh issue of Rs 1,290 crore worth shares by the company, and an offer-for-sale of Rs 860 crore by the government. The price band for the offer was Rs 30-32 per share.
The offer was subscribed 38.8 times during November 21-23, with investors across categories bought total 1,827.25 crore equity shares (which were valued at Rs 58,472.07 crore at the upper price band), against IPO size of 47.09 crore shares.
Qualified institutional buyers, who are generally considered as a medium-to-long term investors, took the lead, subscribing 104.57 times the allotted quota, followed by high networth individuals who have bid 24.16 times and retail investors 7.73 times. Apart from them, employees picked shares 9.8 times the quota.
Also read: IPO Frenzy: Rs 2.5 lakh crore garnered by 5 public issues this week
Given the strong response to the offer, equity shares will be allocated to investors on a proportionate basis.
Investors can check their share allotment status either on the BSE website or the portal of IPO registrar (Link Intime India), by following three easy steps.
On the BSE website,
a) Select issue type 'equity' and issue name 'Indian Renewable Energy Development Agency Limited' in the dropdown,
b) Enter either 'application number' or 'PAN number',
c) Check box (I am not a robot), and finally click on 'search' button
On the IPO registrar portal,
a) Select 'Indian Renewable Energy Development Agency Limited - IPO'
b) Select and accordingly enter either 'PAN number', or 'application number', or 'DP client ID'
c) And finally click on 'search' button'
Equity shares are expected to be credited to demat accounts of successful investors by November 28, while the trading in equity shares is likely to commence on the BSE and NSE, with effect from November 29. These are tentative dates and may change.
Also read: Tata Tech IPO sees Rs 1.56 lakh crore bids, issue booked 69.4 times on final day
IREDA IPO shares were available at more than 30 percent premium over the upper price band, in the grey market, an unofficial platform for trading in the IPO shares till the listing, analysts on anonymity said. Generally, investors go through the grey market premium to know the possible listing price for any IPO.
The attractive pricing (at 1.0x 1HFY24 P/BV (on an annualized & diluted basis)) and the increasing focus on renewable energy (RE) were some of reasons for the great demand for the issue.
"IREDA operates in niche segment of RE which is poised to grow at rapid pace with government's increased focus," Motilal Oswal said.
Further, elevation of IREDA to the ‘Schedule A’ category opens the door for “Navratna” status, which would strengthen the balance sheet further. This along with lowest cost of funding and stringent corporate governance provides IREDA a competitive edge, the brokerage believes.
Also read: Gandhar Oil Refinery IPO Final Day: Issue subscribed 64.07 times, NII portion booked 62.23x
It is a wholly owned GoI enterprise with over 36 years of experience in extending green financial assistance. It offers comprehensive suite of financial products for renewable energy projects, and emerging technologies.
India has set an aggressive target of 500 GW non-fossil fuel based capacity installation by 2030 and net-zero emissions by 2070. With significant investment expected across RE sectors, IREDA with fastest growth in gross loan portfolio with 30 percent CAGR over FY21-23 vs peers is well positioned to tap this opportunity with 31 percent market share, Motilal Oswal said.
Mehta Equities also thinks considering the India's ambitious renewable energy goals and IREDA's position as the largest green financing NBFC, the company stands as a trusted brand in a rapidly expanding sector. The brokerage also believes IREDA plays a pivotal role in shaping and implementing policies for the renewable energy sector, aligning with the Government of India's objectives.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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