IREDA IPO Day 2: The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA), which was opened for public subscription on Tuesday, has been subscribed a decent 4.56 times on the second day of subscription on Wednesday. Till the end of the Wednesday bidding, the Rs 2,150-crore IPO received bids for 2,14,52,83,140 shares against 47,09,21,451 shares on offer.
The category meant for non-institutional investors received 7.74 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 4.25 times. The portion for Qualified Institutional Buyers (QIBs) was subscribed 2.69 times. The IPO has a fresh issue of up to 40,31,64,706 equity shares and an offer for sale of up to 26,87,76,471 equity shares.
On the first day of bidding on Tuesday, November 21, the IPO was fully subscribed 1.95 times.
The IPO allotment will take place on November 29, while the share listing might take place on December 4.
IREDA IPO GMP
According to market observers, unlisted shares of IREDA were trading Rs 9 higher in the grey market as compared with its issue price. The Rs 9 grey market premium or GMP means the grey market is expecting a 28.12 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About IREDA IPO
The IPO has a fresh issue of up to 40,31,64,706 equity shares and an offer for sale of up to 26,87,76,471 equity shares. The price range for the offer is Rs 30-32 a share. Indian Renewable Energy Development Agency has mobilised Rs 643 crore from anchor investors.
This is the first public issue by a public sector enterprise after Life Insurance Corporation’s IPO in May last year. Proceeds from the fresh issue will be used for augmenting IREDA’s capital base to meet its future capital requirements and onward lending.
The minimum lot size for an application is 460 shares. The minimum amount of investment required by retail investors is Rs 14,720. The minimum lot size investment for NII is 14 lots (6,440 shares), amounting to Rs 2,06,080, and for NII, it is 68 lots (31,280 shares), amounting to Rs 10,00,960.
IREDA is a mini Ratna firm with administrative controls with the Ministry of New and Renewable Energy. The organisation 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.
SBI Capital Markets, IDBI Capital Markets and Securities and BOB Capital Markets are the managers to the offer. Shares of the company will be listed on the BSE and the NSE.
(The story and the headline have been updated with the latest subscription and GMP data)
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