Curated By: Business Desk
Last Updated: November 21, 2023, 11:44 IST
Subscriptions for the Indian Renewable Energy Development Agency’s (IREDA) initial public offering (IPO) are being accepted as of today, November 21. On Thursday, November 23, the issue will close. Anchor investors have contributed Rs 643 crore to the company in advance of the IPO.
Following LIC’s May 2022 stock market debut, IREDA is the country’s first PSU IPO to reach the market in 2023. Right now, the largest IPO in India is LIC.
In addition to an Offer for Sale of 26 crore shares with a face value of Rs 10 apiece, IREDA’s IPO consists of a new issue of 40.3 crore shares. The offer has a fixed price range of Rs 30 to Rs 32 per share, and investors can bid in lots of 460 shares or multiples of that amount. Based on the upper levels of the price band, a retail investor can bid a minimum of one lot i.e. Rs 14,720 and a maximum of 13 lots i.e. Rs 1,91,360.
There is a lot of hype about this IPO on the grey market, per a Moneycontrol report. On November 18, the grey market was seeing unlisted shares of the IREDA IPO trade at a premium of Rs 7. This implies that the shares of the company may be launched at Rs 39. However, it’s not a given that an IPO’s listing on the stock market will also fetch a premium if its shares are selling for more in the grey market.
Primary market investors will be keeping an eye on IREDA among the five mainboard IPOs scheduled for next week, according to Bigul CEO Atul Parekh. Investors may make long-term investments in the IREDA IPO, which is anticipated to yield better listing benefits. Wright Research’s founder and fund manager, Sonam Srivastava, has also encouraged investors to participate in this IPO at the same time.
Right now, IREDA is India’s biggest pure-play NBFC for green financing. Any organised funding that supports international efforts to tackle climate change and the shift to a low-carbon economy is referred to as “green financing”.
Additionally, the company’s portfolio is diversified because no state accounts for more than 16% of total loans, which keeps a state or regional concentration at bay. The Department of Public Enterprise also moved IREDA up from Schedule B to Schedule A in the list of CPSEs in September of this year.
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