The Indian Renewable Energy Development Agency (IREDA) is set to launch its initial public offering (IPO) on November 21, with a price band of ₹30-32 per share. The government-promoted company, which has a focus on renewables, intends to raise a significant sum of ₹2,150 crore through the IPO.
IREDA plans to use the proceeds to strengthen its capital base and further its lending operations. Investors will have the opportunity to bid for a minimum of 460 shares, with multiples of 460 thereafter.
This announcement follows IREDA being recognized as a pivotal Systemically Important Non-Deposit-taking Non-Banking Finance Company, highlighting its status as a financial institution dedicated to the renewable energy and energy efficiency sectors.
Boasting over 36 years of experience, IREDA is known for funding new and renewable energy projects, energy efficiency, and conservation projects, as well as other related activities such as equipment manufacturing and transmission.
In addition to the IPO details, the company has revealed some key financial and risk factors potential investors should consider. These include IREDA’s revenue growth and profit increase from operations, as well as its capital-to-risk-weighted asset ratio and gross non-performing assets.
Furthermore, the company has linked its financial stability to state electricity distribution companies, acknowledging the importance of their financial health to its own operations. The potential impacts of revisions to power purchase agreements and the concentration of non-performing assets in certain project types also play a role in IREDA’s risk assessment.
The book-running lead managers for the IPO are IDBI Capital Markets & Securities Limited, BOB Capital Markets Limited, and SBI Capital Markets Limited. The upcoming IPO launch coincides with an active market for public offerings, including the announcement of Tata Technologies’ IPO, also set to open soon.
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