IREDA IPO: Opportunity to earn from IPO of government company, issue of Rs 2150 crore, one share is worth Rs 32
IREDA IPO to Open 21 November 2023: If you want to earn by investing money in the IPO market then this is a good opportunity. The IPO of public sector renewable energy-related finance company IREDA will open on 21 November 2023 and investors can subscribe to the IPO till 23 November. The size of the IPO is Rs 2150 crore. Whereas IREDA has fixed the price band for IPO at Rs 30-32 per share. For this, the anchor book will open on 20th November. Refund will also be given on 28th November on the basis of allotment till 23rd November. The company will be listed on the stock exchanges BSE and NSE on December 1, 2023.
About IPO:-
According to the upper limit of the price band, IREDA’s IPO will have a fresh issue of Rs 1290 crore and OFS of Rs 860 crore. 26.88 crore shares will be sold through OFS. The government is going to sell its stake in the company under Offer for Sale. The price band of the IPO will be announced soon. Based on the upper price band, the value of the company has been estimated at Rs 8600 crore. At present, the central government has a 100 percent stake in it. The responsibility of lead managers for this issue has been given to IDBI Capital, BoB Caps, and SBI Caps.
Condition in a gray market:-
There is a stir in the gray market regarding the unlisted stock of IREDA. The company’s stock is at a premium of Rs 4, which is a 13 percent premium in terms of the upper price band of Rs 32.
How much reserve for whom?
In IREDA’s IPO, 50 percent of shares will be reserved for institutional investors, 15 percent for non-institutional investors, and a total of 35 percent for retail investors. For this, some portion will be reserved for the employees. The company will spend the amount raised through IPO to increase its capital base and meet its future capital needs.
What does IREDA do?
IREDA is the country’s largest green finance non-banking company. 2023 September CRAR of this company has been 20.92%. IREDA is about 36 years old financial institution, which supports renewable energy and energy efficiency projects. This company provides financial products and services for such projects ranging from planning to equipment manufacturing and transmission.
How are the company’s financials?
IREDA’s income for the first 6 months of the current financial year has been Rs 2320.46 crore. Whereas, in the same period of its last financial year, the company’s income was Rs 1577.75 crore. The company’s profit in the first 6 months till September 2023 was Rs 579.32 crore, which was Rs 410.27 crore in the same period of the last financial year. In the first 6 months, gross NPA was 3.13 percent and net NPA was 1.65 percent. Asset quality has improved compared to last year.
