The IREDA IPO is now open: Today marked the launch of Indian Renewable Energy Development Agency’s (IREDA) first public offering (IPO) on the country’s main market. Thus, the IREDA IPO is set to commence today and run through November 23, 2024, which is this Thursday. The book build offer is planned for listing on the BSE and NSE, and the PSU has set the IREDA IPO price band at ₹30 to ₹32 per equity share. Through its IPO, the state-owned business hopes to raise ₹2,150.21 crore.
Meanwhile, the grey market has continued to be optimistic about the initial offer on the day of the IREDA IPO’s debut. Market watchers claim that shares of the Indian Renewable Energy Development Agency Ltd. can currently be purchased on the grey market for ₹7 premium.
IREDA IPO subscription status:
The public issue had been subscribed 0.81 times by 12:57 PM on the first day of bidding, while the retail part had been subscribed 1.13 times. The public issue’s NII section received 1.14 subscriptions.
Important IREDA IPO details:
1] IREDA IPO GMP today: According to market watchers, the company’s shares are currently available on the gray market at a premium of ₹7.
Date of IREDA Initial Public Offering (IPO): On November 21, 2024, the public offering will be available for subscription. Bidding will be open until November 23, 2024.
3] Price of the IREDA IPO: The PSU has set the book build issue’s fixed price band at ₹30 to ₹32 per share.
4] IREDA IPO lot size: Bidders may submit their applications in lots, with each lot containing 460 company shares.
5] IREDA IPO size: With its public offering, the government-owned limited business hopes to raise 2,150.21 crore.
6] the tentative date for finalizing the share distribution is either November 24, 2024, or November 27, 2024, following the T+3 schedule. Thus, the IREDA IPO allotment date could occur on Friday of the following week or on a Monday that follows the conclusion of the following week.
7] IREDA IPO investment cap: One lot consists of 460 firm shares, with the IREDA IPO pricing range being ₹30 to ₹32 per share. Retail investors must submit an application for the IPO with a minimum of ₹14,720 (₹32 x 460).
8] IREDA IPO listing: The BSE and NSE are proposing to list the public offering of the public limited government corporation.
9] Date of IREDA listing: November 28, 2024, is when the public issue may list.
IREDA IPO: Apply or not?
10]Reviewing the IREDA IPO, Arun Kejriwal, the founder of Kejriwal Research and Investment Services, tagged the offering with the hashtag “subscribe.” He stated, “The company, as its name implies, is the nodal agency for Renewable energy and has financed multiple projects from the full value chain.” As of September 30, 23, its AUM is ₹47,500 crs. The business has a 1.66% NNPA and a 3.21% GNPA. The price to book range for the shares is 1.15–1.23. For the year that ended on March 23, the EPS was ₹3.78. The company’s PE ranges from 7.94 to 8.47. The business has favorable comparisons with REC and PFC. Investment in the organization makes sense and provides opportunities for short- and medium-term growth.”
“IREDA has played a strategic role in the GoI’s initiatives for the promotion and development of the RE sector in India with a strong track record of growth, diversified asset book, high quality assets, and consistent profitability,” Reliance Securities said in assigning the IPO a “subscribe” tag. Because it has access to affordable long-term borrowing sources, including a combination of domestic and foreign borrowings that have improved profitability over the previous several years, IREDA is continuing to maintain its leadership in the RE sectors and hopes to strengthen its position in emerging green technologies while optimizing costs. Given IREDA’s recent record of great profitability, promising development prospects, and seasoned management, we strongly advise SUBSCRIBING to the publication.”
“Diversification and expansion in emerging green technologies like green hydrogen, pumped hydro storage power plants, battery storage value chain, and green energy corridor provides scope for longer term sustainability of high growth of its loan book,” says Nirmal Bang, who has also advised investors to apply for the IPO. We rank the issue as “Subscribe” due to its modest base, proven track record of strong growth, improved asset quality, and affordable values at 1.1x trailing P/B (post issue).
The IREDA IPO has been suggested as a viable option for primary market investors by BP Equities, Choice Broking, and Swastika Investmart. SBICAP Securities, however, has not assigned a rating to this state-owned company’s public offering.
Notice: Mint does not endorse the opinions or suggestions expressed above; rather, they represent the opinions of certain analysts or broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.