IREDA booked 2x on first day

Indian Renewable Energy Development Agency (IREDA) garnered full subscription for its initial public offering (IPO) on Tuesday — the first day of bidding — following strong demand from across categories. It will remain open till Thursday.

According to exchange data, the issue received bids of close to 921 million equity shares against the offered 471 million at a price band Rs 30-32, amounting to a subscription of 1.96x.

On Monday, IREDA had raised Rs 643 crore from anchor investors. Goldman Sachs (Singapore), Societe Generale, Gam Star Emerging Equity, and Copthall Mauritius Investment were among the foreign institutions who participated in the anchor, besides domestic mutual funds.

IREDA is a non-deposit-taking NBFC that engages in green financing. It promotes, develops, and extends financial assistance for new and renewable energy projects, and energy efficiency and conservation projects.

The company’s management seeks to ramp up its presence in new and emerging green technologies. As of the September quarter, its outstanding loan portfolio stood at Rs 47,500 crore, according to a note by Motilal Oswal Financial Services.

IREDA has seen fastest growth in its gross loan portfolio, with a 30% CAGR over FY21-23 vis-à-vis its peers. Its net profit grew 58% CAGR during the same period. Its return ratios are also healthy, with return on equity and return on assets at 15% and 2%, for FY23, adds the note.

IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets are the book-running lead managers.