IREDA fixes price band at Rs 30-32 per share for Rs 2,150 crore IPO

Indian Renewable Energy Development Agency Ltd (IREDA) on Thursday fixed the price band for its up to Rs 2,150.21 crore Initial Public Offering (IPO) at Rs 30-32 per equity share, the company said here on Thursday.

The company's maiden IPO will open for the public on November 21 for subscription and close on November 23, it said.

Investors can bid for a minimum of 460 equity shares and in multiples of 460 equity shares thereafter, it said.

The public issue of face value of Rs 10 per equity share comprises fresh issuance of equity shares up to 403.16 million and an Offer for Sale (OFS) of up to 268.78 million shares aggregating to up to 671.94 million equity shares, the government-owned company said.

The company is into promoting, developing and extending financial assistance for new and renewable energy projects, and energy efficiency and conservation projects, offering a comprehensive range of financial products and related services, from project conceptualisation to post-commissioning, for renewable energy projects and other value chain activities, such as equipment manufacturing and transmission.

It is also India's largest pure-play green financing NBFC in India.

The company has a geographically diversified portfolio, with term loans outstanding across 23 states and five Union Territories as of September 30, and has four strategically located branches in Mumbai, Hyderabad, Chennai, and Bhubaneshwar to maximize geographical range in terms of territory.

The issue will garner Rs 2,015.82 crore to Rs 2,150.21 crore at the lower and upper end of the price band, respectively, the company said.

The company had reported a net profit of Rs 864.63 crore in FY23 as against Rs 633.53 crore a year earlier while the net interest income increased to Rs 1,323.76 crore from Rs 1,128.04 crore a year ago.

Capital to Risk-Weighted Asset Ratio (CRAR) stood at 18.82 per cent for FY23 and for the six months ended September 30, it was 20.92 per cent, the company said.

For H1FY24, net interest income stood at Rs 785.42 crore, and profit after tax was Rs 579.31 crore.

For the same period, IREDA sanctioned total loans worth Rs 4,744.50 crore, it said.

As of September 30, 2023, it had a diversified portfolio of term loan outstanding amounting to Rs 47,514.48 crore, as per the company.

IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd are the book-running lead managers to the issue.