IREDA IPO Update: IREDA (Indian Renewable Energy Development Agency), a government NBFC company related to the renewable energy sector, has fixed the price band of the IPO opening from November 21, 2023. The company has fixed the price band of IPO at Rs 30-32 per share. According to this price band, the company is going to raise Rs 2150.21 crore from the market through IPO.
The IPO of public sector renewable energy related finance company IREDA will open next week on Tuesday, 21 November 2023 and investors will be able to apply for the IPO till 23 November. Anchor investors can apply for IPO on 20th November. IREDA has fixed the premium at Rs 22 as per the upper band on the face value of Rs 10. The price band of IPO is Rs 30 – 32 per share.
A lot size of 460 shares has been kept in the IPO and investors can apply for the IPO in multiples of the lot size of 460 shares. In IREDA’s IPO, 50 percent shares have been reserved for institutional investors, 15 percent for non-institutional investors and a total of 35 percent for retail investors. Shares will be reserved for employees in IREDA’s IPO.
IREDA is issuing 40.3 crore shares as fresh issue while 26.8 crore shares are being issued under offer for sale. The government is going to sell its stake in the company under Offer for Sale. The company will spend the amount raised through IPO to increase its capital base and meet future capital needs.
If we look at the financial results of the company, the company’s revenue has increased by 47 percent to Rs 2320 crore between April and September in the financial year 2023-24. Whereas the profit increased by 41 percent and stood at Rs 578 crore. In March 2023, the Cabinet had approved the listing of Indian Renewable Energy Development Agency Limited (IREDA) in the stock exchanges through IPO. After LIC’s IPO in May 2022, IREDA is the first company whose government is bringing IPO.
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