Indian Renewable Energy Development Agency is coming up with an IPO consisting of a fresh issue of shares worth INR 1,290 crores and an offer sale amounting to INR 860.08 crores. The company intends to utilize the funds towards augmenting its future capital requirements and to achieve the benefits of listing.
IREDA IPO – Important Details
|IREDA IPO Date||November 21, 2023 to November 23, 2023|
|IREDA IPO Listing Date||December 4, 2023|
|IREDA IPO Price||INR 30 to 32 per share|
|IREDA IPO Lot Size||460 shares|
|IREDA IPO Total Issue Size||Approx INR 2,150 crores|
|IREDA IPO Basis of Allotment||November 29, 2023|
|IREDA IPO Initiation of Refunds||November 30, 2023|
|IREDA IPO Credit of Shares to Demat||December 1, 2023|
|IREDA IPO Issue Type||Book Built Issue IPO|
|IREDA IPO Listing At||BSE,NSE|
Indian Renewable Energy Development Agency Ltd IPO – Company Profile
Incorporated in March 1987, Indian Renewable Energy Development Agency Limited is owned by the Indian government. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA is a Mini Ratna (Category – I) government enterprise.
IRDEA is an experienced financial institution that has been actively promoting, developing, and extending financial assistance for new and renewable energy projects and energy efficiency and conservation projects for over 36 years. The company offers a comprehensive range of financial products and related services, from project conceptualization to post-commissioning, for RE projects and other value chain activities such as equipment manufacturing and transmission.
IRDEA is committed to facilitating the transition towards a greener, more sustainable future. As a reliable partner, the company ensures its clients receive the best possible support and guidance throughout their projects.
Indian Renewable Energy Development Agency Ltd IPO – Fundamental Analysis
Indian Renewable Energy Development Agency Ltd’s financial performance preceding its IPO portrays promising revenue growth, increasing profits, and improving return metrics. However, fluctuating EPS, NAV, equity expansion, and heightened liabilities pose potential risks. Extensive research and advisory consultation are recommended before considering investment.
The company has shown consistent revenue growth over the past three fiscal years, indicating a positive trend in its income generation.
There’s a significant increase in equity from 2021 to 2023. While this can signify potential expansion, it also dilutes existing shareholders’ ownership stake.
Despite increased revenue, expenses have also risen. However, the increase is not proportionate to the revenue growth, indicating some control over costs.
Profit After Tax:
The company’s profits have consistently grown over the years, reflecting a positive financial trajectory.
Return on Net Worth (RoNW) and Return on Assets (ROA) have gradually increased, indicating improving efficiency in utilizing both equity and assets for generating profits.
Earnings Per Share (EPS):
Although there’s a notable increase in EPS from 2021 to 2022, there’s a decrease in 2023. This could raise concerns about profitability in the current fiscal year.
Net Asset Value (NAV):
The NAV has fluctuated, showing a decline from 2021 to 2022 but a slight improvement in 2023.
Total Assets and Liabilities:
Both assets and liabilities have increased consistently, indicating growth but also potential increased financial obligations.
A healthy increase in operating margin signifies improved efficiency in generating profit from revenue.
Indian Renewable Energy Development Agency Ltd IPO Financial Information
|Particular||As at 31 March 2021||As at 31 March 2022||As at 31 March 2023|
|Equity(₹ in millions)||29,956.00||52,681.13||59,351.69|
|Expenses (₹in millions)||20,882.28||20,403.15||23,437.96|
|Profit and Loss After Tax (₹ in millions)||3,463.81||6,335.28||8,646.28|
|Diluted EPS only (₹)||4.41||8.03||3.78|
|NAV per Equity Share (₹)||38.18||23.06||25.98|
|Total Assets (in millions)||302,933.91||367,084.05||504,469.83|
|Total Liabilities (in millions)||272,977.91||314,402.92||445,118.14|
|Return on Assets (ROA)||1.20%||1.89%||1.98%|
Indian Renewable Energy Development Agency Ltd IPO Peer Comparison
Indian Renewable Energy Development Agency Limited’s IPO exhibits a lower EPS compared to REC Limited and Power Finance Corporation. Despite a lower NAV and P/E ratio, its RoNW stands competitively at 15.43%, signaling potential against its peers.
|Company||Face Value per Equity Share (₹)||P/E||EPS (Basic) (₹)||EPS (Diluted) (₹)||RoNW (%)||NAV per Equity Share (Basic) (₹)|
|Indian Renewable Energy Development Agency Limited||10||–||3.78||3.78||15.43%||25.98|
|Power Finance Corporation||10||4.79||60.19||60.19||20.34%||424.16|
Indian Renewable Energy Development Agency Ltd IPO Objective
Indian Renewable Energy Development Agency Limited proposes utilizing the fresh issue’s net proceeds to augment capital requirements and increase the business. The company also aims to achieve the benefits of listing equity shares and to enhance its brand image among its existing and potential customers.
Indian Renewable Energy Development Agency IPO Risks and Challenges
Indian Renewable Energy Development Agency faces risks from regulatory changes impacting its 50 MW solar project in Kerala and susceptibility to interest rate volatility, potentially affecting business viability and financial stability.
- Projects and schemes for generating electricity and energy through renewable sources like solar, wind, hydro, biomass, waste-to-energy, and new and emerging technologies have inherent risks and, to the extent they materialize, could adversely affect the company’s business, results of operations, and financial condition.
- IREDA Limited operates a 50 MW solar project in Kerala, which may be subject to tariff changes by the Kerala State Electricity Regulatory Commission (“KSERC”), which, among other factors, may adversely affect the project’s viability.
- The company’s business depends on interest income from the loans disbursed by it and the interest rates at which it borrows from banks and financial institutions. Volatility in interest rates could adversely affect the business.
Indian Renewable Energy Development Agency Ltd IPO – Industry & Market Potential
India’s energy sector shows significant potential with rising power demand, a shift towards renewable sources (42% of 425 GW capacity), and ambitious targets (500 GW non-fossil fuel by 2030). Government initiatives and a planned ₹24.43 trillion outlay boost industry growth towards a cleaner, sustainable future.
India’s power generation sector is diverse, encompassing conventional (coal, natural gas) and unconventional sources (wind, solar, hydro). The industry has seen a 4.2% CAGR, with renewables’ share growing from 19.1% in 2019 to 23% in 2023.
IREDA IPO – Type of Offer
Indian Renewable Energy Development Agency Ltd plans a fresh share issue, targeting INR 1290 crores for capital expansion to meet growing business needs. Additionally, existing shareholders, including the President of India, will sell shares worth INR 860 crores.
● Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1290 crores. The company intends to utilize the proceeds from the fresh issue to expand its capital requirements for the increasing business requirements.
● Offer for sale: Existing shareholders will sell a portion of their stake in the company for INR 860 crores. The following is the detail of the shareholder selling the shares:
|Name of the promoter selling shareholder||Maximum number of offered shares for sale|
|The President of India, acting through the Ministry of New and Renewable Energy, Government of India.||268,776,471|
IREDA IPO Offer Size
The Indian Renewable Energy Development Agency plans to launch an IPO comprising a new share issue valued at INR 1,290 crores and an offer for sale totaling INR 860.08 crores. The funds will bolster future capital needs and capitalize on the advantages of being listed.
Indian Renewable Energy Development Agency Limited IPO Allotment Structure
IREDA Limited IPO’s IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations. Also a portion of the issue is reserved for eligible employees.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Eligible Employees: A portion of the offer aggregating to almost 18.75 lakh shares is reserved for the employees.
How to apply for an IREDA Limited IPO?
To apply for the IREDA Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the IREDA Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the IREDA Limited IPO’s at Alice Blue[M1] in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check IREDA Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the IREDA Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the IREDA Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the IREDA Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the IREDA Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
ASK Automotive IPO Offer Registrar
The registrar for the IREDA Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Tel: +91 810 811 4949
E-mail: [email protected]
IREDA Limited IPO FAQs
What is the allotment date of the IREDA Limited IPO?
The allotment date will be finalized on November 29, 2023, and the allotted shares will be credited to the customers demat account by December 1, 2023.
What is the price band of the IREDA Limited IPO?
The price band of the shares issue is INR 30-32 per share.
What is the size of the IREDA Limited IPO?
The Indian Renewable Energy Development Agency plans to launch an IPO comprising a new share issuance valued at INR 1,290 crores and an offer for sale totaling INR 860.08 crores. The funds will be utilized to enhance future capital needs and capitalize on the advantages of being publicly listed.
What is the listing date of the IREDA Limited IPO?
The listing date of the issue is December 4, 2023.