IREDA IPO Listing Next Week: What Does GMP Suggest?

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posted on 5 months ago — updated on 1 second ago

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Unlisted shares of IREDA are currently trading Rs 10 higher in the grey market, which is a 31.25 per cent listing gain from the public issue

IREDA IPO, which saw a whopping 39 times subscription last week, is likely to be listed on the BSE and the NSE on December 4. According to market observers, the grey market premium (GMP) of the Indian Renewable Energy Development Agency (IREDA) is indicating a 31.25 per cent gain in the listing gain.

The Rs 2,150-crore IPO was open for public subscription between November 21 and November 23. The share allotment was finalised on November 25. Those who have got the shares will get the shares in their demat accounts on Friday, December 1. Those who have not got the IPO allotment will get refund, the process for which will start on November 30.

IREDA IPO GMP Today

According to market observers, unlisted shares of IREDA are currently trading Rs 10 higher in the grey market as compared with its issue price. The Rs 10 grey market premium or GMP means the grey market is expecting a 31.25 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.

The price range for the offer stood at Rs 30-32 a share.

IREDA IPO Subscription Status

The IPO received 38.8 times the subscription. The category for Qualified Institutional Buyers (QIBs) received a whopping 104.57 times subscription. The quota for non-institutional investors got subscribed 24.16 times and the portion for Retail Individual Investors (RIIs) received 7.73 times subscription. 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 was Rs 30-32 a share. Indian Renewable Energy Development Agency mobilised Rs 643 crore from anchor investors.

IREDA IPO: How To Check Allotment Status

Here’s how you can check IREDA IPO allotment status via BSE website:

1) Go to the official BSE website via the URL —https://www.bseindia.com/investors/appli_check.aspx.

2) Under ‘Issue Type’, select ‘Equity’.

3) Under ‘Issue Name’, select ‘Indian Renewable Energy Development Agency Limited’ in the dropbox.

4) Enter your application number, or the Permanent Account Number (PAN).

5) Then, click on the ‘I am not a robot’ to verify yourself and hit ‘Search’ option.

Your share application status will appear on your screen.

You can also visit direct Link Intime portal — linkintime.co.in/mipo/ipoallotment.html and check IREDA IPO allotment status.

IREDA IPO Details

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.

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 were the managers to the offer. Shares of the company will be listed on the BSE and NSE.