IREDA sees bumper debut; lists over 56% premium on bourses; Should you hold or book profit?

IREDA shares listed at 56.25 % premium over IPO price on bourses amid a bullish domestic market. The share debuted at Rs 50 on the NSE as well as on the BSE, surpassing the issue price of Rs 32. The investors have made a profit of Rs 18 per share as the scrip gave more than 56% return to investors on the listing.

“In a much-anticipated debut, IREDA, a leading non-banking financial institution (NBFI) dedicated to financing renewable energy projects, made its mark on the stock markets today, listing at Rs 50 per share, a premium of 56% over its IPO price of Rs 32. The listing was above the market expectations, reflecting the strong fundamentals and growth potential of the company. IREDA’s strong financial performance and focus on the burgeoning renewable energy sector make it an attractive investment proposition,” said Shivani Nyati, Head of Wealth, Swastika Investmart.

IREDA opened for subscription on Tuesday, November 21, 2023, and closed on Thursday, November 23, 2023. The public issue was subscribed 38.80 times. The Qualified Institutional Buyers (QIBs) category was subscribed 104.57 times, the portion for non-institutional investors received 24.16 times subscription and the Retail Individual Investors (RIIs) quota got oversubscribed by 7.73 times. IREDA collected Rs 58,471.92 crore from the public issue.

The IPO comprises fresh issue of 403,164,706 shares aggregating up to Rs 1,290.13 crore and an Offer-For-Sale (OFS) with promoters offloading 268,776,471 shares aggregating up to Rs 860.08 crore. For potential investors, the bidding started at a minimum of 460 equity shares, with subsequent bids in multiple lots of 460 equity shares each, with a maximum of 13 lots. IREDA collected Rs 643.26 crore from the anchor investors.