NEW DELHI - The Indian Renewable Energy Development Agency (IREDA), acknowledged as a Mini Ratna and Infrastructure Finance Company, is gearing up for its initial public offering (IPO) set to launch on Tuesday. The state-owned entity aims to raise Rs 2,150 crore ($265 million approximately) to enhance its capital base for future lending to renewable energy projects across India.
The upcoming IPO will consist of fresh equity shares totaling up to 40.3 crore, complemented by an Offer for Sale (OFS) of another 26.9 crore equity shares. The price band for the shares has been fixed at Rs 30-32 per share, with subscriptions starting in increments of 460 shares each.
IREDA's term loan portfolio boasts a robust Rs 47,514 crore dedicated to supporting renewable energy initiatives. The company operates from four branches, including one located in Chennai, reflecting its commitment to advancing India's green energy sector.
As part of the IPO details released today, the company has also indicated an expected grey market premium (GMP) of Rs 7 - 8 per share. This suggests that the market anticipates a positive reception to the public offering.
Investors interested in contributing to India's renewable energy expansion through IREDA will have the opportunity to subscribe to the IPO starting this Tuesday. The capital raised will play a crucial role in funding various state and territory projects, as IREDA continues its mission to promote, develop, and extend financial assistance for renewable energy and energy efficiency/conservation projects throughout the country.
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