The Indian Renewable Energy Development Agency's IPO was subscribed 38.8 times on November 23, the final day of bidding. Investors sent bids for 1,827 crore equity shares against the offer size of 47.09 crore.
Qualified institutional buyers (QIBs) and high networth individuals (HNIs) bought 104.57 times and 24.16 times their allotted quota of shares. The public sector undertaking (PSU) has reserved 50 percent of the offer for QIBs and 15 percent for HNIs.
The remaining 35 percent of the net offer has been set aside for retail investors, who booked 7.73 times their allotted quota. Employees had bid 9.8 times for their reserved portion. The Mini-Ratna PSU has set aside 18.75 lakh shares for its employees.
Also read: IREDA IPO opens on November 21: Should you subscribe to the Rs 2,150-crore issue?
The Rs 2,150.21-crore offer comprises a fresh issue of 40.31 crore equity shares worth Rs 1,290.13 crore and an offer-for-sale of 26.87 crore shares worth Rs 860.08 crore by the government.
The price band for the offer, which opened on November 21, has been fixed at Rs 30-32 a share.
Also Read Moneycontrol's Exclusive Note on IREDA IPO
IREDA, which provides financial assistance for new and renewable energy projects, raised Rs 643 crore from anchor investors at the upper price band.
SBI Mutual Fund, BNP Paribas Arbitrage, SBI Life Insurance Company, Copthall Mauritius, HDFC Mutual Fund, Integrated Core Strategies (Asia), ICICI Prudential Mutual Fund, Kotak Mutual Fund, Societe Generale, LIC MF, Goldman Sachs and DSP Mutual Fund were among the anchor investos.
Click Here To Know Latest Subscription Numbers of Tata Tech IPO
The fresh issue proceeds will be use for augmenting the capital base.
The share was at a 30 percent premium in the grey market, an unofficial platform wherein IPO shares can be bought and sold till the listing day.
"IREDA operates in niche segment of renewable energy funding which is poised to grow at rapid pace with government's increased focus. It enjoys lowest cost of funding on account of highest credit rating and stringent corporate governance which provides IREDA a competitive edge," Sneha Poddar is the AVP - Retail Research, Broking and Distribution at Motilal Oswal Financial Services said.
Also read: Tata Technologies IPO: A deep dive into its business, risk factors and whether you should invest
Recently IREDA got elevated to the ‘Schedule A’ category, which openrd the door for “Navratna” status, which could strengthen the balance sheet further, she said.
As the first government-run company IPO since LIC, it carries certain credibility, Sonam Srivastava, Founder and Fund Manager at Wright Research said.
The renewable energy sector's growth potential is significant but it's also subject to policy changes and technological advancements, which could influence IREDA's performance, she said.
Also read: IREDA IPO: 10 things to know before subscribing to Rs 2,150 crore issue
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
