IREDA IPO - Everything You Must Know
Indian Renewable Energy Development Agency, commonly called IREDA, is set to launch its IPO on 21 November 2023. In a significant move from the Indian government, this will be the next government-run company to introduce its initial public offering after Life Insurance Corporation of India (LIC).
About IREDA
IREDA was incorporated in March 1987. It is a wholly owned Government of India enterprise which is under the administrative supervision of the Ministry of New and Renewable Energy.
With over 36 years of dominance in new and renewable energy (RE) projects, it has been an industry leader. It is focused on providing quality assistance to streamline Renewable Energy and Energy Efficiency and Conservation Projects. It has also been instrumental in promoting and advancing financial aid to new and renewable energy projects.
It has been recognised as a Mini Ratna (Category - I) government enterprise and has contributed significantly to India's Renewable Energy sector.
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Key Things to Know About IREDA IPO
Here’s a brief glimpse of IREDA IPO-
|
IPO Date |
21 November 2023 to 23 November 2023 |
|
Price Band |
Rs 30-32 per share |
|
Face Value |
Rs 10 per share |
|
Lot Size |
460 Shares |
|
Total Issue Size |
671,941,177 shares (aggregating up to Rs 2,150.21 Cr) |
|
Fresh Issue |
403,164,706 shares (aggregating up to Rs 1,290.13 Cr) |
|
Offer for Sale |
268,776,471 shares of Rs 10 (aggregating up to Rs 860.08 Cr) |
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IREDA IPO Date
The IREDA IPO will open for subscription on 21 November 2023. It will close on 23rd November, 2023.
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Listing Date
As per the IPO schedule, the trading of IREDA shares will start on 1 December 2023.
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Offer Details
- The company is planning to raise Rs 2,150.21 crore through its IPO.
- The offer will comprise a fresh issue of 40.31 crore shares, which will be worth Rs 1,290.13 crore and an offer-for-sale (OFS) of 26.87 crore shares, which will be worth Rs 860.08 crore.
- The firm is valued at Rs 8,600 crore on the upper price band.
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IREDA IPO Share Price Band
The price band for the issue has been fixed at Rs 30-32 per share.
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Lot Size
For the IREDA IPO, investors can bid for a minimum of 460 equity shares and multiples of 460 after that.
Therefore, the minimum investment by retail investors would be Rs 13,800 [460 (Lot size) x 30 (lower price band)]. The bidding amount will increase to Rs 14,720 at the upper end.
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Company Financials
Between the FY ending with 31 March 2023 and 31 March 2022, IREDA’s revenue increased by 21.18%. Its profit after tax (PAT) increased by 36.48%
Here is a brief break-up of the Financials of IREDA (in Rs crores)-
|
Financial Year |
Total Assets |
Total Revenue |
Profit After Tax |
EPS |
|
31 March, 2021 |
30,293.39 |
2,657.74 |
346.38 |
4.41* |
|
31 March, 2022 |
36,708.41 |
2,874.16 |
633.53 |
8.03 |
|
31 March, 2023 |
50,446.98 |
3,483.04 |
864.63 |
3.78 |
*Note: These are Consolidated figures. The figures from 2022 and 2023 are standalone.
How to Apply for IREDA IPO on Groww
The process to apply for IREDA IPO online on Groww is mentioned here-
Step 1:Â You can apply for IREDA IPO through Groww's IPO Page, or via the Groww app. Simply, open the application and go to the stocks tab. Scroll down to view the live IPOs and select IREDA IPO.
Step 2: Here, you will see all the necessary details about the IPO, including lot size, issue size, price range, and more. You can also view the Red Herring Prospectus (RHP) here. Next, click on ‘Apply’ to move forward.
Step 3: Next, you will see the pre-filled field for the minimum number of shares in the order card. Here, you will be required to enter the number of shares you want to purchase. Click on ‘Continue’ to proceed.
Step 4: In this step, you will have to verify bids and next click on ‘Submit Bid‘.
Step 5: Once you confirm the order, the highest bid amount will be blocked in your account and cannot be used for withdrawal. Remember, this amount will get unblocked if you do not receive the allotment.
The status of your IREDA IPO application can be viewed on your Groww account. Note that any modifications or order cancellations will be possible only till the time the IPO is open.
The Bottom Line
IREDA has been one the most crucial players in shaping the renewable energy industry of India. With this IPO, the organization is aiming to expand its operations and contribute even more than before. The proceeds of this IPO will be used to expand the capital base to fulfil future capital requirements and many more necessities.
Remember to conduct thorough research before applying for this IPO by considering all the necessary factors and your own financial objectives.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Aakash Baid