The Rs 2,150-crore initial public offering of Indian Renewable Energy Development Agency (IREDA) has seen a subscription 4.56 times on the second day of bidding, November 22 as investors have bid 214.52 crore equity shares against offer size of 47.09 crore shares.
All investors participated in the offer since the beginning of public issue with high networth individuals buying 7.74 times the allotted quota and retail investors 4.25 times.
The portion set aside for qualified institutional buyers was subscribed 2.69 times and that of employees 4.97 times.
The Mini Ratna government enterprise has reserved 50 percent of the net issue size for qualified institutional buyers, and 15 percent for high networth individuals. And the remaining 35 percent portion is set aside for retail investors. The offer excluding employees' portion of 18.75 lakh shares is the net issue.
Also read: IREDA IPO: Should you subscribe to the Rs 2,150-crore issue?
The public issue of 67.19 crore equity shares by IREDA comprises a fresh issue of 40.31 crore shares worth Rs 1,290.13 crore, and an offer-for-sale (OFS) of 26.87 crore shares worth Rs 860.08 crore by the Government of India, at the upper price band.
The price band for the offer, which closes on November 23, has been fixed at Rs 30-32 per share.
The state-owned financial institution that provides financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects will utilise net fresh issue proceeds for augmenting the capital base to meet future capital requirements and onward lending.
Also read Moneycontrol's Exclusive Note on IREDA IPO
Of the total issue size, the firm has already mobilised Rs 643 crore from anchor investors at the upper price band.
Societe Generale, BNP Paribas Arbitrage, Goldman Sachs, Integrated Core Strategies (Asia), Copthall Mauritius, SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, SBI Life Insurance Company, LIC MF, and DSP Mutual Fund are some of investors participated in the anchor book on November 20.
This is the first public sector enterprise IPO by the government after Life Insurance Corporation launched in May last year.
Also read: IREDA IPO: 10 things to know before subscribing to Rs 2,150 crore issue
IREDA's IPO shares attracted around 20-30 percent premium in the grey market over its upper price band, analysts on anonymity said.
The grey market, which is an unofficial platform for trading in the IPO shares till the listing, is generally looked at by the investors to get a bit of indication about the possible listing price of any IPO.
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