IREDA, a public financial institution, is set to open its initial public offering (IPO) for subscription on November 21 and close on November 23. The company aims to raise ₹2,150 crore through the IPO, with a price band of ₹30-32 per share. Investors can bid for a minimum of 460 shares and in multiples of 460 thereafter.
The net proceeds from the fresh issue will be utilized to augment IREDA’s capital base and to meet future capital requirements for onward lending. The company has over 36 years of experience in promoting, developing, and providing financial assistance for renewable energy projects, energy efficiency, and conservation.
IREDA’s performance has been robust, with a revenue growth of 24% in FY23 and a 36% increase in net profit during the same period. Its listing peers in the market are REC and Power Finance Corporation. The company’s finances are indirectly linked to that of state electricity distribution companies or discoms, which may pose a risk to its operations.
Overall, IREDA’s IPO presents a significant opportunity for investors to participate in a company that has a strong foothold in the renewable energy sector and a solid financial track record. With a strong domestic and international market presence, IREDA’s IPO is set to be a highly anticipated offering.