The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) witnessed a robust response from investors during its bidding process.
The IPO ended on Thursday, November 23, and the share allocation has been finalized on Saturday, November 25. The company’s equity shares are likely to be listed on BSE and NSE stock exchanges on November 29.
Before the IPO listing, let’s check what the GMP and the subscription status show:
IREDA IPO GMP
Analysts note a robust investor response to IREDA’s IPO, suggesting that the increase in gray market sentiment can be attributed to the strong reception.
IREDA IPO GMP or gray market premium today is ₹10 per share, the same as yesterday and the day before. This indicates that IREDA’s share price is likely to list at a premium of 31.23 percent at ₹42. However, the GMP reduced from ₹12 and ₹11 on November 23 and November 24 respectively. “Grey market premium” indicates the willingness of investors to pay more than the issue price.
However, it should be noted that the gray market premium is only an indicator of how the company’s shares perform in the unlisted market and can change quickly.
IREDA IPO subscription status
IREDA IPO was subscribed to 38.80 times during its 3-day offering process. The public issue received bids for 1,827 crore shares against 47.09 crore shares tendered.
The Qualified Institutional Buyers (QIB) quota was booked the most, 104.57 times, followed by the Non-Institutional Investors (NII) share, which was subscribed 24.16 times. Meanwhile, the retail investor category was offered 7.73 times and the employee share was reserved 9.8 times.
The ₹2,150.21 crore IPO of the PSU was opened for subscription between November 21 and November 23 and the price band for the offer was set at ₹30-32 per share.
Indian Renewable Energy Development Agency is a government company which has “miniratna” status (Category-I). Incorporated in 1987, IRDEA is an experienced financial institution that has actively promoted, developed and extended financial assistance for new and renewable energy projects.
The issue consists of a fresh share sale value ₹1,290.13 crore and an offer for sale (OFS) by the Government of India for 268,776,471 equity shares aggregating up to ₹860.08 crores. The net proceeds of the fresh issue will be used to increase the capital base to meet future capital requirements and onward lending.
The company also raised ₹643.26 crore from 58 anchor investors including Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Moon Capital Trading and Copthall Mauritius participated in the anchor book.
BoB Capital Markets, IDBI Capital Market Services and SBI Capital Markets are the book-running lead managers to the issue, while Link Intime India Private has been appointed as the registrar.
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Updated: 27 Nov 2023, 11:35 IST
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