© Reuters.
The Indian Renewable Energy Development Agency (IREDA) is poised for its stock market debut on December 4, following a highly successful initial public offering (IPO) that saw immense investor interest. The state-owned entity’s IPO, which includes fresh issue and an offer for sale (OFS) totaling ₹2,150.21 crore, has been met with considerable enthusiasm from various investor classes.
During the subscription period from November 21-23, the IPO attracted bids nearly 39 times the number of shares available. Qualified Institutional Buyers (QIBs) led the charge with over 104 times subscription, while Non-Institutional Investors and retail investors also showed significant interest. The strong demand is reflected in the IPO’s grey market premium (GMP), which remained steady at ₹10 per share as of Saturday, November 25.
Investors who were not allocated shares can expect refunds starting from Thursday, November 30, while those who were successful will see shares credited to their demat accounts by Friday, December 1. The anticipation for IREDA’s listing is supported by its ‘miniratna’ status and its role in financing India’s renewable energy sector growth. The agency plans to use the proceeds from its fresh issue worth ₹1,290.13 crore and OFS of ₹860.08 crore to expand its capital base and support onward lending.
The offering was managed by SBI Capital Markets, IDBI Capital Markets and Securities, and BOB Capital Markets, with Link Intime India Private handling registrar duties. Anchor investors like Goldman Sachs had invested ₹643.26 crore ahead of the IPO.
IREDA’s forthcoming listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) marks a significant event for the company and investors alike, as it underscores the growing interest in sustainable energy investments within India’s burgeoning capital markets.
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