R ARIVANANTHAM
CHENNAI, NOV 18
State-run Indian Renewable Energy Development Agency (IREDA) said on Saturday that it has fixed a price band of ₹30-32 per share for its initial public offer (IPO), which will open on Tuesday, November 21, and close on Thursday, November 23.
The anchor book will open for a day on Monday, November 20.
The company plans to raise ₹2,150.21 crore through a fresh issue of 40.31 crore shares worth ₹1,290.13 croreand an offer-for-sale of 26.87 crore shares worth ₹860 crore. This is the first IPO by a government-run company since LIC hit the market in May last year.
- The IPO will open for subscription on November 21, and close on November 23
- The anchor book will open for a day on Monday, November 20
- Investors can bid for a minimum of 460 shares and multiples of 460 after that
On the upper price band, the firm is valued at ₹8,600 crore. Currently, the government holds a 100 percent stake in the firm.
IREDA, a mini-ratna under the Ministry of New and Renewable Energy (MNRE), is a systemically important non-deposit-taking non-banking finance firm (NBFCND-SI) with the status of an infrastructure finance company (IFC).
Investors can bid for a minimum of 460 shares and multiples of 460 after that, IREDA CMD Pradip Kumar Das said in a press conference.
Reply to a query, Pradip Kumar Das said that the big players in renewable energy sector – Reliance and Adani had already approached IREDA and they would be extended credit post IPO, he added.
This is the first IPO by a government-run company, since LIC hit the market in May last year.
The proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
IREDA has reserved half of the shares in the public issue for Qualified Institutional Buyers (QIB), 35 per cent for retail investors and 15 per cent for Non Institutional Investors (NII).
IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets are the book-running lead managers and Link Intime India is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE. The trading of IREDA shares on the bourses will commence with effect from December 1, as per the IPO schedule.
As of September 30, 2023, IREDA had a diversified portfolio of term loan outstanding amounting to ₹47,514.48 crore. For FY23, its net interest income increased to ₹1,323.77 crore against ₹1,128.04 crore a year ago. Net profit increased from ₹633.53 crore in FY22 to ₹864.63 crore in FY23.
Capital to risk-weighted asset ratio (CRAR) stood at 18.82 per cent for FY23 and for the six months ended September 30, 2023, it was 20.92 per cent.
For the six months ended September 30, 2023, IREDA’s net interest income stood at ₹785.42 crore, and profit after tax was ₹579.32 crore. For the same period, the company sanctioned total loans amounting to ₹4,744.5 crore.