Indian Renewable Energy Development Agency (IREDA) is likely to finalise the basis of allotment for its recently concluded initial public offer on Friday, November 24, or over the weekend. Bidders will begin getting alerts, mails and messages regarding the amount debited or revocation of the mandate by Friday or by Monday.
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IREDA sold its IPO in the price band of Rs 30-32 apiece. It had a lot size of 460 shares. The issue ran from November 21 to November 23. The state-run PSU raised a total of Rs 2,150.21 crore via the IPO, which included a fresh share sale of Rs 1,290.13 crore and an offer-for-sale (OFS) of 26,87,76,471 shares.
The issue was overall subscribed 38.80 times during the three-day bidding process. The portion reserved for qualified institutional bidders (QIBs) was subscribed a whopping 104.57 times. The portion reserved for non-institutional investors saw 24.16 times bidding. The quotas for retail investors and employees were subscribed 5.09 times and 7.73 times, respectively.
The grey market premium (GMP) of IREDA has jumped following the strong institutional investor response to the issue. Last heard, IREDA was commanding a premium of Rs 12 apiece in the unofficial market, suggesting a listing pop of around 38 per cent for investors. This is higher than Rs 8-10 per share GMP it was commanding during the bidding period.
IDBI Capital Markets, BoB Capital Markets and SBI Capital Markets are the book running lead managers to the issue, while Link Intime India is the registrar for the issue.
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Shares of IREDA will be listed on both BSE and NSE on Thursday, November 29. The stock market would be shut on Monday.
Indian Renewable Energy Development Agency is a government company, which has a miniratna status (Category-I) government enterprise. Incorporated in 1987, IRDEA is an experienced financial institution that has been actively promoting, developing, and extending financial assistance for new and renewable energy projects.
Brokerage firms tracking the PSU were positive on the IPO and had mostly suggested ‘subscribe’ ratings. A strong balance sheet, diversification and expansion in emerging green technologies, robust order books and solid asset quality were seen as key positives for IREDA in the long-run.
Investors, who bade for the IREDA issue, can check the allotment status on the BSE website’s IPO application check page. Check-in equity, under the issue type and select Indian Renewable Energy Development Agency Limited in the dropbox; type-in the application number and add the PAN card number before checking-in at ‘I am not a Robot’ before hitting the submit button.
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Allotment status can also be checked through the online portal of Link Intime India, the registrar to the issue. Visit the web portal of Link Intime and select the IPO of ASK Automotive in the dropbox. Enter the either PAN Card number, Application Number or DP Client ID as selected tab and hit ‘search’ to get the allotment status for your application.
