The listing of Indian Renewable Energy Development Agency (IREDA) in the stock market was excellent. The share is listed on NSE, BSE at Rs 50 with a premium of 56.25%. The issue price of the share was Rs 32.
Before the IPO, IREDA has raised Rs 643.26 crore from anchor investors. 20.1 crore shares have been allotted to 58 anchor investors at a price of Rs 32 per share. Investors include SBI Banking and Financial Services Fund, HDFC Mutual Fund, ICICI Prudential, Nippon Life India Trustee and Kotak Mahindra Trustee.
This is the first government IPO in the last 18 months. According to company chairman Pradeep Kumar Das, the government is considering giving ‘Navratna’ status to IREDA.
IPO got great response
IREDA’s IPO was fully subscribed 38.8 times till the last day of subscription. Its QIB portion was filled 104.57 times, NII portion 24.16 times and retail portion 7.73 times. Its employee share was filled 9.76 times.
What does the company do
IREDA, formed in 1987, is a public limited government company. It is a Miniratna (Category-I) government enterprise and is run by the Ministry of New and Renewable Energy.
The company works in four important sectors, these are solar, hydro, biomass and biofuel.
IREDA is a ‘Non-Banking Financial Institution’, which helps in promoting and developing renewable energy projects along with financing them. This company with 36 years of experience provides many financial products and related services. These include services from project design to post-commissioning.
Where will the money be used
The offer includes fresh issue and offer for sale. The company will not earn any income from the offer for sale and all the money will go to the promoter selling the shareholding.
The company intends to use the proceeds from the fresh issue to expand its capital base to meet future capital and lending needs.
