The shares of the Indian Renewable Energy Development Agency are set to begin trading on the stock exchanges today. The GMP of IREDA's shares increased by 37.5% prior to its offering, signaling a good IPO. The IREDA subscription period began on Tuesday, November 21, 2023, and ended on Thursday, November 23, 2023. The public offering was subscribed 38.80 times.
"IREDA, a state-run Mini Ratna NBFC, is poised to make history with its upcoming mainboard IPO, despite being fully priced." The QIB segment's 104-fold oversubscription reflects considerable market expectation for its November 29 debut. Mehta Equities forecasts a 25% or higher listing gain against the Rs 32/- issue price, citing IREDA's leadership in renewable energy financing and the possibility of a Navratna company upgrading. "The NBFC's financial independence is expected to boost its competitive edge," said Prashanth Tapse, Senior Vice President (Research), Mehta Equities.
The public issue brought in Rs 58,471.92 crore for IREDA, with the Qualified Institutional Buyers (QIBs) category being subscribed to 104.57 times, non-institutional investors receiving 24.16 times subscription, and the Retail Individual Investors (RIIs) quota being oversubscribed by 7.73 times.
"As India's largest green financing NBFC, IREDA supports the country's ambitious renewable energy goals." Short-term investors might consider taking profits over the predicted gain, while long-term investors should consider holding for future possibilities. "Prashant Tapse of Mehta Equities suggests accumulating IREDA post-listing dips for promising long-term returns, extending an opportunity for those who missed the public offer," he added.
The IPO consists of a fresh issue of 403,164,706 shares worth Rs 1,290.13 crore and an Offer-For-Sale (OFS) with promoters selling 268,776,471 shares for Rs 860.08 crore. Bidding begins with a minimum of 460 equity shares, with further bids in multiple lots of 460 equity shares each, up to a maximum of 13 lots. The anchor investors contributed Rs 643.26 crore to IREDA.
