IREDA IPO receives exceptional response its first day, achieving full subscription across its offerings, Notably, retail investors played a significant role, standing out with their enthusiastic participation.

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IREDA IPO has opened for subscription today (Tuesday, November 21), and will close on Thursday, November 23. (Getty Images/iStockphoto)
IREDA IPO has opened for subscription today (Tuesday, November 21), and will close on Thursday, November 23. (Getty Images/iStockphoto)

The initial subscription status of the Indian Renewable Energy Development Agency (IREDA) IPO stands at 1.96 times on its first day. Commencing today, November 21, the IPO will remain open for subscription until Thursday, November 23. Priced within a band of ₹30 to ₹32 per equity share (with a face value of ₹10), the IREDA IPO lot size consists of 460 equity shares, and thereafter, multiples can be purchased in increments of 460 equity shares. Retail investors showed remarkable enthusiasm towards the IREDA IPO, filling the subscription within the initial two hours of its availability. Consequently, all allocated portions were oversubscribed by the end of day one.

In the IREDA IPO, the allocation stands as follows: up to 50% of the shares are reserved for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and at least 35% of the offer is earmarked for Retail Investors. During the initial day of the IREDA IPO, the subscription rates for various investor segments were noteworthy. The retail investors’ portion garnered a subscription rate of 1.97 times, the Non-Institutional Investors (NII) portion saw a subscription rate of 2.73 times, while the Qualified Institutional Buyers (QIB) portion achieved a subscription rate of 1.34 times. Additionally, the employee portion was subscribed 2.11 times.

IREDA IPO subscription status

As per data from the BSE, the IREDA IPO has received bids for 92,07,68,200 shares, surpassing the available 47,09,21,451 shares on offer.

In the Indian Renewable Energy Development Agency IPO, the participation across segments was robust:

  • Retail investors bid for 46,26,47,300 shares, surpassing the 23,45,23,015 shares available for this segment.
  • Non-institutional investors showed strong interest, bidding for 27,42,36,820 shares against the 10,05,09,864 shares on offer for their segment.
  • Qualified Institutional Buyers (QIBs) put in bids for 17,99,18,880 shares, exceeding the 13,40,13,152 shares available in this segment.
  • The employee portion received bids for 39,65,200 shares, surpassing the 18,75,420 shares allocated for this segment.

IREDA IPO details

  • The IPO will consist of a fresh issue of up to 40.32 crore shares and an offer for sale (OFS) of up to 26.88 crore equity shares facilitated by the President of India, facilitated through the ministry of new and renewable energy.
  • The offer also entails a set-aside portion intended for subscription by employees.
  • The overall size of the IREDA IPO amounts to ₹2,150.21 crore.

As per the RHP (Red Herring Prospectus), the proceeds from the fresh issue are earmarked for bolstering the capital base to cater to future capital needs and to support ongoing lending activities.

The company, as stated in its RHP, outlines its primary and incidental objectives as per the Memorandum of Association. These include sustaining current business operations and financing specific activities with the generated net proceeds. Additionally, the company anticipates various benefits from the listing of Equity Shares on Stock Exchanges, such as enhancing brand recognition among existing and potential customers and establishing a public market for Equity Shares in India.

The RHP specifies that the President of India, represented by the Ministry of New and Renewable Energy, serves as the Promoter. Presently, along with seven nominees, they collectively hold the entire pre-offer paid-up equity share capital of the company.

The registrar handling the IREDA IPO is Link Intime India Private Ltd. The book running lead managers overseeing this IPO include IDBI Capital Market Services Limited, Bob Capital Markets Limited, and SBI Capital Markets Limited.

IREDA IPO GMP today

The current grey market premium for the IRDEA IPO stands at +6, reflecting a ₹6 premium for IRDEA shares in the grey market as reported on Tuesday by investorgain.com. Based on the upper end of the IPO price band and the existing premium in the grey market, the anticipated listing price for IRDEA shares is estimated at ₹38 each. This forecasted figure represents an 18.75% increase over the IPO price of ₹32.The ‘grey market premium’ showcases investors’ willingness to pay above the issue price for these shares.

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