The initial public offering (IPO) of Indian Renewable Energy Development Agency or IREDA has hit Indian primary market today. So IREDA IPO opens today and it will remain open till 23rd November 2023 i.e. Thursday this week. The PSU has fixed IREDA IPO price band at INR30 to INR32 per equity share and the book build issue is proposed for listing on BSE and NSE. The state-owned company aims to raise INR2,150.21 crore from its initial public offer.
Meanwhile, on IREDA IPO's date of opening, grey market has remained bullish on the initial offer. According to market observers, shares of the Indian Renewable Energy Development Agency Ltd are available at a premium of INR7 in grey market today.
By 11:06 AM on day one of bidding, the public issue has been subscribed 0.37 times whereas its retail portion has been subscribed 0.61 times. The NII portion of the public issue got subscribed 0.30 times.
Important IREDA IPO details
1] IREDA IPO GMP today: Shares of the the company are available at a premium of INR7 in grey market today, say market observers.
2] IREDA IPO date: The public issue will open for subscription on 21st November 2023 and it will remain open for bidding till 23rd November 2023.
3] IREDA IPO price: The PSU has fixed price band of the book build issue at INR30 to INR32 per share.
4] IREDA IPO lot size: A bidder will be able to apply in lots and one lot of the IPO comprises 460 company shares.
5] IREDA IPO size: The public limited government company aims to raise 2,150.21 crore from its public offer.
6] IREDA IPO allotment date: In the wake of T+3 schedule, the tentative date for finalisation of share allocation is either 24th November 2023 or 27th November 2023. This means IREDA IPO allotment date may fall either on Friday next week or on Monday falling after the end of next week.
7] IREDA IPO investment limit: As IREDA IPO price band is INR30 to INR32 per share and one lot comprises 460 company shares. Minimum amount required for a retail investor to apply for the IPO is INR14,720 ( INR32 x 460).
8] IREDA IPO listing: The public issue of the public limited government company is proposed for listing on BSE and NSE.
9] IREDA listing date: The public issue may list on 28th November 2023.
10] IREDA IPO review: Giving 'subscribe' tag to IREDA IPO, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "The company as the name suggests is the nodal agency for Renewable energy and has financed multiple projects from the full value chain. Its AUM is INR47,500 crs as of 30th September 23. The company has GNPA of 3.21% and NNPA of 1.66%. The shares are being offered at a price to book of 1.15-1.23. The EPS for the year ended March 23 is INR3.78. The PE for the company is 7.94-8.47. The company compares favourably with PFC and REC. Investment makes sense in the company and it offers scope for appreciation in the short and medium term."
Reliance Securities has also given 'subscribe' tag to the IPO citing, "IREDA has played a strategic role in the GoI’s initiatives for the promotion and development of the RE sector in India with a strong track record of growth, diversified asset book, high quality assets and consistent profitability. IREDA is maintaining its leadership in RE sectors and wants to enhance its presence in new green technologies optimizing costs as it has access to cost effective long term sources of borrowings with a mix of domestic and foreign borrowings improving profitability over the past few years. IREDA has posted healthy profitability over the past couple of years, strong growth outlook and experienced management team, we recommend a SUBSCRIBE to the issue."
Nirmal Bang has also recommended investors to apply for the IPO citing, "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 sustainability of high growth of its loan book. On the back of low base, demonstrated track record of high growth, improvement in asset quality and cheap valuations at 1.1x trailing P/B (post issue), we rate the issue as ‘Subscribe’."
BP Equities, Choice Broking, Swastika Investmart have also recommended primary market investors to apply for IREDA IPO. However, SBICAP Securities has not rated the public offer of this state-owned company.
he views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before taking any investment decision.
.jpg)