The state-owned Indian Renewable Energy Development Agency (IREDA) is poised to launch its initial public offering (IPO) on November 21, marking the first public offering by a public sector enterprise since LIC’s IPO in May last year. The IPO, with a face value of Rs 10, encompasses a fresh issue of up to 40.3 crore equity shares and an offer for sale (OFS) of up to 26.8 crore equity shares by the government. The price band for the issue will be disclosed shortly.
This offering includes a reserved portion for subscription by eligible employees. Approximately 50% of the IPO will be allocated proportionately to qualified institutional buyers, 15% to non-institutional investors, and 35% to retail investors.
Proceeds from the fresh issue are earmarked for augmenting the capital base to meet future capital requirements and support onward lending.
IREDA, India’s largest dedicated green financing non-banking financial company (NBFC), boasts a robust track record spanning over 36 years in fostering and financially supporting sustainable energy projects and initiatives for energy efficiency and conservation. As of June 2023, the outstanding term loans in its portfolio stood at Rs 47,206 crore, reflecting a diverse investment footprint across 23 states and five union territories.
Furthermore, IREDA extends lines of credit to other NBFCs for lending to renewable energy and energy efficiency projects, fostering a broader ecosystem. The IPO aims to propel the company’s growth trajectory, showcasing a financial performance that has seen a substantial increase in revenue and profit in recent periods.
In the half-year ended September 2023, IREDA experienced a notable 47% surge in revenue to Rs 2,320 crore, with profits witnessing a 41% rise to Rs 579 crore. For the full fiscal year 2023, the standalone revenue from operations increased by 22% to Rs 3,482 crore, accompanied by a 36% surge in net profit to Rs 865 crore.
IDBI Capital Markets, BOB Capital Markets, and SBI Capital have been designated as the book-running lead managers for the IPO, and Link Intime India is the registrar of the offer. The equity shares are proposed to be listed on both BSE and NSE.
