IREDA public issue to open on November 21; board sets price band at Rs 30-32/share

State-owned Indian Renewable Energy Development Agency (IREDA) on Tuesday fixed a price band of Rs 30-32 per share for its Rs 2,150-crore initial public offering (IPO). The maiden public issue will open for subscription on November 21 and conclude on November 23 and the anchor book of the offer will be opened for a day on November 20, according to a public announcement.

This would be the first public issue by a public sector enterprise after Life Insurance Corporation's IPO in May last year.

IREDA would issue up to 40.31 crore fresh shares to mobilize around Rs 1,290 crore at the upper end of the price band. Besides, Government of India, currently the sole shareholder, will offer up to 26.88 crore shares in an offer for sale (OFS) in a bid to collect Rs 860 crore.

Proceeds from the fresh issue will be used for augmenting IREDA's capital base to meet its future capital requirements and onward lending.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

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

IREDA is a 'miniratna' firm under Ministry of New and Renewable Energy. The organization offers a comprehensive array of financial products (fund and non-fund-based) associated services, from project inception to post-completion, for renewable energy projects and related activities like equipment manufacturing and transmission.

BOB Capital Markets, SBI Capital Markets, and IDBI Capital Markets & Securities are the book-running managers for the issue. Shares of the company will be listed on the BSE and NSE.