After a successful IPO, the shares of state-owned IREDA will be listed on the exchanges on Wednesday. Ahead of the listing, the company’s shares are trading with a premium of Rs 11 in the unlisted market.
The public offer, which was priced in the range of Rs 30-32, was subscribed 38.8 times, driven by massive bidding from institutional investors.
The quota reserved for retail individual investors (RIIs) was subscribed 7.7 times, qualified institutional buyers 104 times, and NII 24 times.
If we consider the upper price band of Rs 32, the stock is expected to list at a premium of 35%.
“We believe the listing premium is justified on the back of the company being tagged as leading PSU player in renewable energy financing and advisory services and a possible upgradation from a Mini Ratna to a Navratna company in near future which increases financial autonomy, allowing it to accelerate faster in the competition,” said Prashant Tapse of Mehta Equities.
The proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
IREDA has an impressive track record spanning over 36 years in the field of fostering and providing financial support for fresh and sustainable energy (RE) projects, as well as energy efficiency and conservation (EEC) initiatives.
The company is India’s largest dedicated green financing non-banking financial company (NBFC).
As of June, 2023, its portfolio of outstanding term loans stood at Rs 47,206 crore, reflecting its diverse investment ventures. The company has a geographically diversified portfolio, with term loans outstanding across 23 states and five union territories.
For the half year ended September 2023, its revenue jumped 47% to Rs 2,320 crore, while profit increased 41% to Rs 579 crore.
In FY23, the company’s standalone revenue from operations increased 22% to Rs 3,482 crore, primarily due to the growth of its term loans outstanding. Meanwhile, net profit jumped 36% to Rs 865 crore in the same period. The capital to risk weighted asset ratio (CRAR) stood at 18.82% for FY23 and 19.95% for the June quarter.
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