IREDA IPO :
The Indian Renewable Energy Development Agency Limited (IREDA) is set to embark on a new chapter as it opens its Initial Public Offering (IPO) for subscription from November 21, 2023, to November 23, 2023. This IPO provides investors with a unique opportunity to participate in India’s renewable energy growth story. In this article, we explore the key details of the IREDA IPO, including pricing, offering structure, grey market trends, and the application process.
IPO Pricing and Structure:
| Price Range | Lot Size | Min. Investment | Bid Dates | Listing Date | GMP Yesterday (22-Nov-2023) | GMP Today (23-Nov-2023) | Expected Share Price | Expected Profit per Lot | Buy Y/N |
|---|---|---|---|---|---|---|---|---|---|
| ₹30-₹32 | 460 | ₹13800 | 21st to 23rd November 2023 | 29th November 2023 | ₹10 | ₹10 | ₹42 | ₹5520 | Y |
IREDA’s IPO comprises a fresh issue and an offer for sale (OFS). The face value of the shares is ₹10 per share, with a price band set at ₹30 to ₹32 per share. The fresh issue involves 40,31,64,706 shares, translating to ₹1,290.13 crores at the upper price band. Simultaneously, the OFS comprises 26,87,76,471 shares, amounting to ₹860.08 crores at the upper price band. Notably, the entire OFS portion is offered by the Government of India, the sole promoter of IREDA.
Utilization of Proceeds:
The net proceeds from the fresh issue will be used to augment IREDA’s capital base, a critical step for financial institutions looking to expand their loan portfolios. The OFS, being entirely divested by the government, signifies a transfer of ownership without diluting the company’s capital.
Lead Managers and Registrar:
IDBI Capital Management Services, BOB Capital Markets, and SBI Capital Markets Ltd are the lead managers overseeing the IPO process. The registrar to the issue is Link Intime India Private Ltd.
IREDA IPO GMP today Grey Market Premium (GMP) Analysis:
The GMP, an informal gauge of investor sentiment, provides insights into the likely listing performance of the stock. The GMP for IREDA has shown positive trends in the days leading up to the IPO. As of November 23, 2023, the GMP stands at ₹10 per share, indicating a healthy listing premium of 12.5% over the upper price band of ₹32.
Here is a summary of the GMP trend over the past few days:
| Date | GMP |
|---|---|
| 23-Nov-2023 | ₹10 |
| 22-Nov-2023 | ₹10 |
| 21-Nov-2023 | ₹6 |
| 20-Nov-2023 | ₹7 |
| 19-Nov-2023 | ₹7 |
| 18-Nov-2023 | ₹7 |
| 17-Nov-2023 | ₹7 |
| 16-Nov-2023 | ₹4 |
| 15-Nov-2023 | ₹4 |
| 14-Nov-2023 | ₹3 |
| 13-Nov-2023 | ₹3 |
The positive GMP trend indicates favorable market conditions and growing investor interest in IREDA’s IPO.
इरडा IPO Subscription Trend:
While GMP provides a snapshot of investor sentiment, the actual subscription numbers play a crucial role in determining the IPO’s success. The subscription status as of November 23, 2023, is as follows:
| Category | Subscription (times) |
|---|---|
| QIB | 49.86 |
| NII (HNI) | 14.96 |
| Retail | 34.90 |
| Employee | 0.28 |
| Total | 100.00 |
The robust subscription numbers across categories reflect the strong investor appetite for IREDA’s shares.
IREDA IPO Application Process and Lot Sizes:
Investors can apply for the IREDA IPO based on minimum lot sizes and their respective upper limits. The lot size for retail investors is 460 shares, with a minimum investment of ₹14,720. Here’s a breakdown of lot sizes for different investor categories:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 460 | ₹14,720 |
| Retail (Max) | 13 | 5,980 | ₹1,91,360 |
| S-HNI (Min) | 14 | 6,440 | ₹2,06,080 |
| S-HNI (Max) | 67 | 30,820 | ₹9,86,240 |
| B-HNI (Min) | 68 | 31,280 | ₹10,00,960 |
It’s important to note that there are no upper limits for the B-HNI and QIB categories.
IREDA IPO Quota Allocation:
The IPO allocation is structured to meet listing requirements, with the Government of India’s ownership expected to dilute from 100% to 75%. The qualified institutional buyers (QIBs) are allocated 50% of the net offer, retail investors receive 35%, and the remaining 15% is set aside for high-net-worth individuals (HNI) and non-institutional investors (NII).
IPO Timeline:
Investors should be aware of the key dates in the IPO timeline:
- IPO Opens: November 21, 2023
- IPO Closes: November 23, 2023
- Basis of Allotment: November 29, 2023
- Refunds Initiation: November 30, 2023
- Demat Credits: December 1, 2023
- Listing Date: December 4, 2023
Conclusion: IREDA’s IPO presents an exciting opportunity for investors to participate in the renewable energy sector’s growth. The positive GMP trend, strong subscription numbers, and the company’s strategic objectives signal a promising future. However, investors should conduct their due diligence and stay informed about market conditions to make informed investment decisions.
Disclaimer :
The information provided in this article is for informational purposes only and does not constitute financial advice. Investors are encouraged to read the IREDA IPO RHP for detailed information and consult with financial professionals before making investment decisions.
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