The Indian Renewable Energy Development Agency (IREDA), a state-run entity under the ownership of the Government of India, is preparing to launch an initial public offering (IPO) aiming to raise ₹2,150 crore. The agency has set the price band for its shares at ₹30-32 each. In this public issue, IREDA will issue 403.16 million new shares and offer an additional 268.78 million shares through an offer for sale (OFS), with the goal of generating ₹860 crore.
The subscription window for the IREDA IPO recently closed, and now IDBI Capital, BoB Caps, and SBI Caps, the issue managers, are expected to handle share allotment and process refunds by next Tuesday. Following the completion of these processes, IREDA is slated to make its market debut on Thursday, December 1.
Funds raised from the IPO are designated for several strategic initiatives which include investment in equipment manufacturing, transmission infrastructure, support for energy efficiency projects, and bolstering IREDA's capital base to meet future financing requirements.
In its recent financial performance report, IREDA highlighted a significant increase in profitability with a 54% rise in profit after tax (PAT) reaching ₹285 crore (INR100 crore = approx. USD12 million) for the second quarter. Additionally, the agency has seen growth in its loan book and a substantial reduction in non-performing assets (NPAs), which have decreased from 2.72% to 1.65%.
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