Shares of Indian Renewable Energy Development Agency (IREDA) made an electric start on the bourses on Wednesday. Against the issue price of ₹32, the stock of PSU major listed with 56 per cent premium at ₹50 on the BSE and rose further to close at an upper circuit at ₹60 — a gain 87.47 per cent over IPO price. On the NSE also, the stock listed at ₹50 and closed at ₹60.
The IPO size is ₹2,150.21 crore — a fresh issue of 40.32 crore shares worth ₹1,290.13 crore and an offer for sale (OFS) of 26.88 crore shares worth ₹860.08 crore.
The offer 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.
According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, IREDA’s strong financial performance and focus on the burgeoning renewable energy sector make it an attractive investment proposition. “The renewable energy sector is poised for significant growth in the coming years, driven by government initiatives and increasing environmental concerns,” he said.
High deliverable quantity
Nearly 62 crore shares of on IREDA changed hands on both the exchanges. Of the 58 crore traded shares on the NSE, nearly 45 per cent or 26.50 crore shares were came up for delivery, signalling investors’ interest. On the BSE, too, 43.65 per cent traded shares (3.81 crore) were deliverable quantity.
The company’s long-term prospects also appear promising, making it a worthwhile investment for those with a long-term investment horizon, he added.
The main objectives of the issue are to augment its capital base for future capital requirements and onward lending.
IREDA had raised ₹643.26 crore from anchor investors, as part of IPO process. Among anchor investors were SBI Banking & Financial Services Fund, HDFC Mutual Fund, ICICI Prudential Midcap Fund, Nippon Life India AMC, Kotak India Equity Contra Fund, Aditya Birla Sunlife Mutual Fund, Goldman Sachs (Singapore), DSP Tax Saver Fund, BNP Paribas Arbitrage, Societe Generale, Gam Star Emerging Equity, White Oak Midcap Fund, Sundaram Mutual Fund, Copthall Mauritius Investment and others.
IREDA is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).