Global and domestic investors rally behind IREDA's $2.15 Billion IPO, spotlighting the agency's robust growth and diversified renewable energy portfolio
The Indian Renewable Energy Development Agency (IREDA), a “Mini Ratna” government enterprise, has secured Rs 643.26 crore from 58 anchor investors in the run-up to its Initial Public Offering (IPO).
Key players in the anchor book include renowned names such as Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Moon Capital Trading, and Copthall Mauritius.
Domestic participation in the anchor book comes from prominent mutual funds and insurance companies, including SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mutual Fund, Aditya Birla Sun Life Trustee, SBI Life Insurance Company, DSP Mutual Fund, Max Life Insurance Company, UTI Mutual Fund, Sundaram Mutual Fund, Baroda BNP Paribas, Kotak Mahindra Life Insurance, and LIC MF.
IREDA's market foray is backed by over 36 years of experience in promoting, developing, and providing financial support for new and renewable energy projects, energy efficiency, and conservation initiatives. It aims to raise Rs 2,150.21 crore through a public issue of 67.19 crore equity shares at the upper price band.
The IPO, scheduled to open from November 21 to 23, features a price band of Rs 30-32 per share. The institution has finalised the allocation of 20,10,19,726 equity shares to anchor investors at Rs 32 per share in consultation with merchant bankers.
Breaking down the IPO, it comprises a fresh issue of 40.31 crore equity shares worth Rs 1,290.13 crore by the company and an offer-for-sale (OFS) of 26.87 crore shares worth Rs 860.08 crore by the Government of India. Additionally, 18,75,420 equity shares are reserved for company employees. The net issue, excluding the employee portion, constitutes the primary IPO.
Financially, IREDA boasts a robust performance, with a 15 percent Compound Annual Growth Rate (CAGR) in revenue from FY21–23. Profits during the same period increased impressively at a CAGR of 58 percent.
Notably, the company maintains a well-diversified asset portfolio, with solar energy contributing 30 percent to revenue for the fiscal year ending March FY23. Wind power follows at 19 percent, loans to state utilities at 24 percent, and hydropower at 12 percent.