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The IPO offer of this state-owned company will close on November 23.
It is the first IPO by a public sector enterprise after Life Insurance Corp's public issue in May last year.
The Mini Ratna company is actively promoting, developing, and extending financial assistance for new and renewable energy projects as well as energy efficiency and conservation projects with a strong track record of growth, geared towards high-quality assets and diversified asset book and stable profitability, SMC said in an IPO note.
Government's push towards renewable energy projects is expected to increase, SMC said even as it maintained that the company could suffer if it is unable to maintain and effectively manage the quality of its growing asset portfolio and NPAs.
The IPO with a face value of Rs 10 consists a fresh issue of up to 40.3 crore equity shares and an offer for sale (OFS) of up to 26.8 crore equity shares by the government.
About 50% of the IPO will be available for allocation on a proportionate basis to qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
The proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
IREDA has an impressive track record spanning over 36 years in the field of fostering and providing financial support for fresh and sustainable energy (RE) projects, as well as energy efficiency and conservation (EEC) initiatives.
The company is India's largest dedicated green financing non-banking financial company (NBFC).
The organization offers a comprehensive array of financial products (fund and non-fund-based) and associated services, from project inception to post-completion,