IREDA Secures Rs 643 Crore from Anchor Investors

The Indian Renewable Energy Development Agency (IREDA), a government-owned entity, has successfully raised a significant sum of Rs 643 crore from anchor investors, marking a notable financial move in the public sector. As the first public issue from a public sector enterprise since the Initial Public Offering (IPO) of the Life Insurance Corporation in the previous year, the move has garnered considerable attention.

Substantial Share Allocation to Anchor Investors

In this major financial exercise, IREDA allocated 20,10,19,726 equity shares to 58 different funds, with each share priced at Rs 32, the upper limit of the established price band. The investors at the anchor level come from diverse global and domestic arenas including prestigious names like Goldman Sachs, Societe Generale, and BNP Paribas Arbitrage, along with significant domestic mutual funds and insurance companies such as HDFC Mutual Fund, SBI MF, and Kotak Mahindra Life Insurance Company, among others.

IREDA's Public Issue and Use of Proceeds

IREDA's public issue is set at Rs 2,150 crore with a price band range of Rs 30 to Rs 32 per share. It opened to public subscription on November 21 and closed on November 23. The company is looking to issue up to 40.31 crore fresh shares to help mobilize around Rs 1,290 crore at the higher end of the price bracket. Furthermore, the government of India, the sole shareholder of IREDA, aims to offer up to 26.88 crore shares in an offer-for-sale (OFS) effort, with the intention to raise Rs 860 crore.

The capital generated from the fresh issue is designated to fortify IREDA’s capital base and support future capital requirements, which will facilitate ongoing lending for renewable energy projects.

Investment distribution for the public issue has been meticulously planned, reserving half of the issue size for qualified institutional buyers while allotting 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.

About IREDA and Listing Plans

IREDA, recognized as a 'mini Ratna' firm, operates under the administrative domain of the Ministry of New and Renewable Energy. The agency is renowned for providing a vast spectrum of financial services including both fund and non-fund based offerings, all tailored towards renewable energy project funding, including activities related to equipment manufacturing and energy transmission.

The organization follows a comprehensive protocol encompassing the full life cycle of renewable energy projects, from inception to completion.

The shares of IREDA are slated to be listed on the premier stock exchanges in India, which are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing an avenue for investors to partake in the growth of the renewable energy sector.

IREDA, Investment, PublicIssue