Ireda IPO a hit with punters
MUMBAI : The initial public offering (IPO) of state-owned Indian Renewable Energy Development Agency Ltd (Ireda) opened on Tuesday and attracted investors across categories, reflecting the rising prospects for renewable energy financing in the Indian market. Overall, the IPO was subscribed 1.96 times, with bids received for a total of 921 million shares against the 471 million shares on offer. The response suggests that investors are confident of Ireda’s prospects as India’s largest green financing non-banking financial company (NBFC).
The institutional quota was subscribed 1.34 times, with bids for 179.9 million shares against 134 million shares on offer. Demand from non-institutional investors, including high net-worth individuals and corporate bodies, was even higher at 2.73 times with 274.2 million shares bid for against 100.5 million reserved. The retail quota was subscribed 1.97 times with 462.6 million shares being bid for against the 234.5 million on offer.
The IPO will close on 23 November. The allotment for the IPO is expected to be finalized on 29 November, and the shares are expected to list on the BSE and National Stock Exchange on 4 December. The minimum lot size for an application is 460 shares.
The ₹2,150 crore IPO comprises a fresh issue of up to 403.16 million shares and an offer for sale (OFS) of up to 268.78 million equity shares by the President of India, acting through the Ministry of New and Renewable Energy. Ireda’s IPO, with a price band of ₹30-32, traded at a ₹6 per share premium in the grey market on Tuesday. The grey market is the unofficial market where shares of an upcoming IPO are traded between investors before they are officially listed.
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