Indian Renewable Energy Development Agency IPO: Review, GMP

Indian Renewable Energy Development Agency Limited IPO - Complete Overview

Incorporated in March 1987, the Indian Renewable Energy Development Agency Limited (IREDA) is a financial institution with a remarkable 36-year legacy. Specializing in promoting, developing, and providing financial assistance for new and renewable energy (RE) projects, as well as energy efficiency and conservation (EEC) initiatives, IREDA plays a pivotal role in driving sustainable energy solutions.

IREDA, wholly owned by the Government of India, operates under the administrative control of the Ministry of New and Renewable Energy (MNRE). Recognized as a Systemically Important Non-Deposit-taking Non-Banking Finance Company with Infrastructure Finance Company (IFC) status, IREDA earned the esteemed Mini Ratna (Category I) status in June 2015.

 

What does the company do?

The company possessed a diverse portfolio of outstanding term loans, totaling INR 47,207 crore. It has provided financial support for projects in various renewable energy (RE) sectors, encompassing solar power, wind power, hydropower, transmission, biomass (including bagasse and industrial co-generation), waste-to-energy, ethanol, compressed biogas, hybrid RE, energy efficiency and conservation (EEC), as well as green mobility.

 

Indian Renewable Energy Development Agency Limited IPO Overview

The Indian Renewable Energy Development Agency Limited IPO date is slated to be open for subscription from November 21, 2023, to November 23, 2023. This BSE NSE IPO follows a Book-Built Issue IPO.

The Indian Renewable Energy Development Agency Limited IPO  price is not fixed. The upcoming listing date for the BSE NSE IPO is yet to be disclosed.

The total issue size of this IPO amounts to 671,941,177 equity shares. Within this total issue, 35% is issued to retail investors.

 

Indian Renewable Energy Development Agency Limited IPO Timetable (Tentative)

Events	Date
IPO Opening Date	21 November 2023
IPO Closing Date	23 November 2023
IPO Allotment Date	24 November  2023
Refund initiation	25 November  2023
IPO Listing Date	11 December  2023

 

Indian Renewable Energy Development Agency Limited IPO Details

IPO Opening & Closing Date	21 November to 23 November 2023
Face value	Rs. 10 per Share
Issue Price	30-32 per share
Lot Size	460 shares
Price of 1 lot	14720
Total Issue Size	671,941,177 Shares (aggregating up to Rs. [.] Cr)
Offer for Sale	268,776,471 shares of Rs. 10 (aggregating up to Rs. [.] Cr)
Fresh Issue	403,164,706 Shares (aggregating up to Rs. [.] Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Indian Renewable Energy Development Agency Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot

 

 

Indian Renewable Energy Development Agency Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion (HNI)	15%
Retail share Portion	35%

 

Company Financial

(Amount in Crores)

Period	FY 23	FY 22	FY 21
Total Assets	50,446.98	36,708.41	30,293.39
Total Revenue	3,483.04	2,874.16	2,657.74
PAT	864.63	633.53	346.38
Net worth	5,935.17	5,268.11	2,995.60
Reserve & Surplus	2,310.96	1,776.05	1,386.12
Total Borrowings	40,165.28	27,613.07	24,000.00

 

 Revenue-Breakdown by Segment

Sale of EV Units in India (in units)    

EV Sales Units	FY 23	FY 22	FY 21
Two-wheeler	7,27,434	2,52,547	40,837
Three-wheeler	4,04,231	1,82,587	88,378
Four-wheeler	47,383	18,565	4,588
Goods vehicle	3,049	2,452	28
Total EV sales	11,82,097	4,56,151	1,33,831

 

Revenue By Operations

(Amount in Million)

Particulars	FY 23	FY 22	FY 21
Revenue from operations	34,819.75	28,598.99	26,548.12
Other Operating Income	10.69	142.56	29.32
Total Revenue from operations	34,830.44	28,741.55	26,577.44

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Gross proceeds from the Fresh Issue
• Deduction of Fresh issue-related expenses*
• Net Proceeds

 

Promoters of  Energy Development Agency Limited IPO

The company's promotor is The President of India, Acting Through the Ministry of New and Renewable Energy, Government of India.

Pre-issue Promoter shareholding	100%
Post-issue Promoter shareholding

 

Indian Renewable Energy Development Agency Limited IPO Lead Managers

• BOB Capital Markets Limited
• SBI Capital Markets Limited
• IDBI Capital Markets & Securities Limited

 

Peers of Indian Renewable Energy Development Agency Limited IPO

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Indian Renewable Energy Development Agency Limited	10		3.78
REC Limited	10	5.81	42.28
Power Finance Corporation	10	4.52	60.19

 

IPO's Valuations

Indian Renewable Energy Development Agency Limited IPO’s EPS of Rs. 3.78. But the price is not declared so we cannot calculate the company's P/E ratio.

 

Dividend Policy

According to the Indian Renewable Energy Development Agency Limited  IPO, the company did not distribute dividends in the preceding fiscal years, and its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

• Well-established financial institution with over 36 years of experience.
• Diverse financial product portfolio catering to the entire renewable energy value chain.
• Strong commitment to a greener and more sustainable future.

 

IPO's Weaknesses

• Dependency on Government Policies
• Reliance on Government Policies.

 

IPO GMP Today

The Latest GMP of Indian Renewable Energy Development Agency Limited is Rs. 32.

 

Conclusion

In summary, the IREDA IPO unfolds as a significant player in driving the green revolution. With a strong financial background, commitment to sustainability, and a rich history of supporting renewable projects, IREDA positions itself as a key player in the renewable energy financial sector.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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