State-run Indian Renewable Energy Development Agency (IREDA) said on Thursday that it has fixed a price band of ₹30-32 per share for its initial public offer (IPO), which will open on Tuesday next week.

IREDA, a mini-ratna under the Ministry of New and Renewable Energy (MNRE), is a systemically important non-deposit-taking non-banking finance firm (NBFCND-SI) with the status of an infrastructure finance company (IFC).

Investors can bid for a minimum of 460 shares , IREDA CMD Pradip Kumar Das said in a press conference.

This is the first IPO by a government-run company, since LIC hit the market in May last year.

Public offer

The offer comprises fresh issue of up to 40.31 crore and an Offer for Sale (OFS) of up to 26.87 crore shares (worth ₹860 crore) by the Union Government. The IPO size is around ₹2,150 crore.

IREDA has reserved half of the shares in the public issue for Qualified Institutional Buyers (QIB), 35 per cent for retail investors and 15 per cent for Non Institutional Investors (NII).

IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets are the book-running lead managers and Link Intime India is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

The proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.

Operational metrics

As of September 30, 2023, IREDA had a diversified portfolio of term loan outstanding amounting to ₹47,514.48 crore. For FY23, its net interest income increased to ₹1,323.77 crore against ₹1,128.04 crore a year ago. Net profit increased from ₹633.53 crore in FY22 to ₹864.63 crore in FY23.

Capital to risk-weighted asset ratio (CRAR) stood at 18.82 per cent for FY23 and for the six months ended September 30, 2023, it was 20.92 per cent.

For the six months ended September 30, 2023, IREDA’s net interest income stood at ₹785.42 crore, and profit after tax was ₹579.32 crore. For the same period, the company sanctioned total loans amounting to ₹4,744.5 crore.