The Indian Renewable Energy Development Agency's initial public offering (IPO) had been subscribed 38.76 times by the afternoon of November 23, the final day of bidding. Investors submitted bids for 1,825 crore equity shares in response to a 47.09 crore offer.

Qualified institutional buyers (QIBs) and high net worth individuals (HNIs) purchased 104.57 and 24.14 times their permitted share quotas, respectively. The public sector undertaking (PSU) has set aside 50% of the offer for QIBs and 15% for HNIs.

Retail investors received 7.65 times their permitted quota, accounting for the remaining 35% of the net offer. Employees bid on their reserved part 9.59 times. The PSU Mini-Ratna has reserved 18.75 lakh shares for its employees.

The Rs 2,150.21-crore offer includes a new issue of 40.31 crore equity shares worth Rs 1,290.13 crore and a government offer-for-sale of 26.87 crore shares worth Rs 860.08 crore. The price band for the November 21 offer has been set at Rs 30-32 per share.

At the highest price band, IREDA, which offers financial assistance for new and renewable energy projects, received Rs 643 crore from anchor investors. The proceeds of the new issue will be utilized to increase the capital base. In the gray market, an unauthorized venue where IPO shares can be bought and sold until the listing day, the share was trading at a 30% premium.

"With the government's increased focus, IREDA operates in a niche segment of renewable energy funding that is poised to grow at a rapid pace." It has the lowest cost of capital because of its highest credit rating and strong corporate governance, giving IREDA a competitive advantage," said Sneha Poddar, AVP – Retail Research, Broking, and Distribution at Motilal Oswal Financial Services.

IREDA was recently elevated to the 'Schedule A' category, which opened the way to "Navratna" classification, which might further strengthen the balance sheet, she explained.

It carries some legitimacy being the first government-run corporate IPO since LIC, according to Sonam Srivastava, Founder and Fund Manager at Wright Research. The renewable energy sector has enormous growth potential, but it is also subject to regulatory changes and technical advancements, which could impact IREDA's performance, she said.