Shares of Indian Renewable Energy Development Agency will be listed at the bourses today. The PSU major has fixed the IPO price at ₹32, at the upper end of price band ₹30-32. The IPO witnessed overwhelming response from all category of investors, as it was subscribed nearly 39 times.
The category for non-institutional investors was subscribed 24.16 times, while the portion for retail investors received bids for 7.73 times. The quota for qualified institutional buyers (QIBs) saw a strong response by subscribing 104.57 times and that of employees by 9.80 times.
Analysts expect a strong listing gains.
According to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, “IREDA, a state-run Mini Ratna NBFC, is poised to make history with its upcoming mainboard IPO, drawing significant attention despite being fully priced.
Mehta Equities predicts a 25 per cent or more listing gain against the ₹32 issue price, citing IREDA’s leading role in renewable energy financing and potential Navratna company upgrade.
The NBFC’s financial autonomy is expected to boost its competitive edge. Positioned as India’s largest green financing NBFC, IREDA aligns with the nation’s ambitious renewable energy goals.
“Short-term investors are advised to consider booking profits above the expected gain, while long-term investors are encouraged to hold for future potential,” he said.
Mehta Equities suggests accumulating IREDA post-listing dips for promising long-term returns, extending an opportunity for those who missed the public offer.
IREDA had raised ₹643.26 crore from anchor investors, as part of IPO process.
The main objectives of the issue are to augment its capital base for future capital requirements and onward lending. Indian Renewable Energy Development Agency is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).