In Short : IREDA (Indian Renewable Energy Development Agency) is planning to raise approximately Rs2,150 crore through an Initial Public Offering (IPO). The shares are priced at Rs30-32 each, providing investors with an opportunity to support and be a part of India’s renewable energy growth. It’s a great initiative that will contribute to the expansion of sustainable energy projects in the country.
In Detail : State-run Indian Renewable Energy Development Agency’s (IREDA) Rs2,150-crore initial public offer (IPO) will open for subscription on Tuesday. The company has set a price band of Rs30-32 per share for the IPO.
IREDA, which supports renewable energy and energy efficiency projects, plans to issue up to 403.16 million new shares to raise around Rs1,290 crore. Besides, Government of India, which is currently the sole stakeholder, will offer up to 268.78 million shares in an offer for sale (OFS), to raise another Rs860 crore.
The subscription window will open on 21 November and will remain open till 23 November. After the closure of the subscription window, the issue managers will determine the allotment of shares and refunds to those not allotted shares by 28 November. IREDA is expected to make its market debut on 1 December.
IDBI Capital, BoB Caps, and SBI Caps are the issue managers and anchors.
IRDA plans to use funds raised from the IPO for strategic initiatives, including investment in equipment manufacturing and transmission infrastructure. IREDA also intends to strengthen its capital base to support future financing needs in the renewable energy sector.
IREDA reported a 54 per cent increase in profit after tax (PAT) at Rs285 crore for the fiscal second quarter. The company also saw remarkable growth in loan book and a significant reduction in net non-performing assets (NPAs) from 2.72 per cent to 1.65 per cent year-on-year.
