State-run Indian Renewable Energy Development Agency (IREDA) has set a price band for its initial public offering at Rs 30-32 a share.
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IREDA IPO: State-run Indian Renewable Energy Development Agency (IREDA) has set a price band for its initial public offering at Rs 30-32 a share. The issue will open on November 21 and close on November 23. The anchor book will open on 20 November.
The allocation to anchor investors for the Indian Renewable Energy IPO is scheduled to take place on Monday, November 20.
The floor price is 3 times the face value of the equity shares and the cap price is 3.20 times the face value of the equity shares. The price/earnings ratio based on diluted EPS for fiscal 2023 at the floor price is 7.94 times and at the cap price is 8.47 times. IREDA IPO lot size is 460 equity shares and in multiples of 460 equity shares thereafter.
IREDA IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
Indian Renewable Energy Development Agency Limited (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE), according to Red-herring prospectus (RHP).
The company’s listed industry peers are REC Ltd (with P/E of 7.71), and Power Finance Corporation (with P/E of 4.79), as per the RHP.
Indian Renewable Energy Development Agency’s IPO is first by a public sector enterprise after Life Insurance Corp.’s issue in May 2022.
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The IPO will comprise 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. The offer includes a reservation for subscription by employees. IREDA IPO size is Rs 2,150.21 crore.
According to the RHP, the proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
“The main objects and objects incidental and ancillary to the main objects set out in the Memorandum of Association enable us: (i) to undertake our existing business activities; and (ii) to undertake the activities proposed to be funded from the Net Proceeds. Further, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including to enhance our brand image among our existing and potential customers and creation of a public market for the Equity Shares in India,” said the company in its RHP.
The company has appointed IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd as managers to the issue.
IRDEA IPO GMP today
IRDEA IPO grey market premium is +3. This indicated IRDEA share price today are trading at a premium of Rs 3 in the grey market on Tuesday, according to investorgain.com.
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Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of IRDEA share price was indicated at Rs 35 apiece, which is 9.38% higher than the IPO price of Rs 32.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
