IREDA sets Rs 30-32 price band for its IPO

On the upper price band, the state run firm will raise around Rs 1290 crore via fresh issue and Rs 860 crore via OFS

State-run Indian Renewable Energy Development Agency (IREDA) has set a price band for its initial public offering at Rs 30-32 a share. The issue will open on November 21 and close on November 23. The anchor book will open on 20 November.

Basis of allotment will be on November 23, initiation of refund will be on November 28 and the firm will list on exchanges on December 1.

The issue consists of a fresh issue of up to 403.16 million shares and offer for sale (OFS) of up to 268.78 million shares by the Government of India. On the upper price band, the state run firm will raise around Rs 1290 crore via fresh issue and Rs 860 crore via OFS. On the upper price band, the firm valued at Rs 8600 crore. Currently, the government holds 100 percent stake in the firm.

Also Read: IREDA IPO opens on November 21; details here

The lender will use from its proceeds from fresh issue for augmenting its capital base to meet future capital requirements and onward lending. As of September 2023, its CRAR stood at 20.92 percent.

IREDA is a 36-year-old financial institution that supports renewable energy and energy efficiency projects, offering a full range of financial products and services, from project planning to post-commissioning, including equipment manufacturing and transmission.

For the six month ended September 2023, the lender reported total income of Rs 2320.46 crore against Rs 1577.75 crore a year ago. Net profit for the half year stood at Rs 579.32 crore against Rs 410.27 crore last year. Gross and net NPA for the half year was at 3.13 percent and 1.65 percent from 5.06 percent and 2.72 percent respectively. Provision coverage ratio stood at 48.11 percent.

IDBI Capital, BoB Caps and SBI Caps are the lead managers to the issue.

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