The initial public offering of Indian Renewable Energy Development Agency Ltd. opens on Tuesday. The offer—first government IPO in 18 months—will close on Thursday.
The government is looking to raise Rs 2,150 crore through the primary share sale, which is a mix of fresh issue and an offer-for-sale portion. The Union government, which is a promoter in the firm, will offload 2.69 crore shares, reducing its stake will decline to 75% from 100%.
Issue opens: Nov. 21.
Issue closes: Nov. 23.
Total offer size: Rs 2,150 crore.
Fresh issue size: Rs 1,290 crore.
Offer for sale size: Rs 860 crore.
Face value: Rs 10 apiece.
Fixed price band: Rs 30–32 per share.
Lot size: 460 shares.
Listing: NSE, BSE.
The pre-IPO shareholding stands at 2,28,46,00,000 and will increase to 2,68,77,706 after the initial public offering.
Promoters selling shareholders will be taking part in the offer for sale. The President of India, acting through the Ministry of New and Renewable Energy, Government of India, will be offloading a total of 2.69 crore shares.
Post-IPO, the promoter and public group shareholding to public shareholding ratio will stand at 75:25, from 100% with the promoter and public group category previously.
Incorporated in 1987, Indian Renewable Energy Development Agency Limited is a public limited government company. It is a Mini Ratna (Category – I) government enterprise and is administratively controlled by the Ministry of New and Renewable Energy.
The company operates in four key sectors: solar, wind, hydro, biomass, biofuels and cogeneration.
IREDA is a non-banking financial institution that promotes, develops and extends financial assistance for new and renewable projects. With 36 years of experience under their belt, the company provides a comprehensive range of financial products and related services, from project conceptualization to post – commissioning, for renewable energy projects and other value chain activities, such as equipment manufacturing and transmission.
Use of Proceeds
The offer includes a fresh issue and an offer for sale. The company will not receive any proceeds from the offer for sale part of the issues, and all proceeds from the OFS will be received by the promoter selling shareholder.
The company intends to utilise the net proceeds from the fresh issue for the following purposes:
To augment the company’s capital base to meet future capital requirements and onward lending.
Subscription Status: Day 3
The IPO has been subscribed 0.31 times, or 31%, as of 10:48 a.m. on Tuesday.
Institutional investors: nil
Non-institutional investors: 0.26 times, 26%
Retail investors: 0.51 times, 51%
Employees reserved: 0.43 times, 43%
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