IREDA IPO subscribed 53% so far on first day of bidding process
Indian Renewable and Energy Development Agency (IREDA) subscribed 53% in the first two hours on the first day of the bidding process on Tuesday.
At 11.53 a.m., the public issue was subscribed 0.53 times, led by retail investors, whose category was subscribed 84%. The issue was subscribed to 51% in the NII category.
There have been no bids from qualified institutional buyers so far.
Ahead of the issue launch, the company's shares were trading at a premium of Rs 7 in the unlisted market. The company has fixed a price band of Rs 30-32 per equity share for its public offer.
The issue closes on October 23.
Most analysts recommend subscribing to the initial public offering of Miniratna company IREDA, given that it’s the largest pure-play in green energy financing and also gives an opportunity to bet on the country’s renewable energy goals.
The IPO consists of a fresh issue of shares worth Rs 1,290 crore and an offer for the sale of shares worth Rs 860 crore by the government.
IREDA is India’s largest pure-play green energy financing NBFC and plays a strategic role in the development of renewable energy with a comprehensive suite of financial products and other value chain activities, such as equipment manufacturing and transmission.
The company has a track record of strong loan growth, geared towards high-quality assets which reflects in the improving asset quality, says Nirmal Bang Securities.
Further, IREDA intends to leverage its industry expertise to enhance its presence in new and emerging green technologies.
“Diversification and expansion in emerging green technologies like green hydrogen, pumped hydro storage power plants, battery storage value chain and green energy corridor provides scope for longer-term
