NEW DELHI - The Indian Renewable Energy Development Agency (IREDA) has announced its upcoming initial public offering (IPO), signaling a significant move in the green financing sector. The IPO is set to open on November 21 and will close on November 23, with a fresh issue of up to 40.3 crore shares and an offer for sale (OFS) of 26.8 crore shares by the government. Details regarding the IPO price band are expected to be released shortly.
The agency has reserved a portion of the IPO for its employees and outlined the allocation among different investor classes:
- Institutional buyers: 50%
- Non-institutional investors: 15%
- Retail investors: 35%
IREDA, recognized as a non-banking financial company (NBFC), plays a pivotal role in supporting renewable energy (RE) and energy efficiency (EEC) initiatives by providing a range of financial products and services. It offers credit lines to other NBFCs, loans to government entities, and financing schemes tailored for suppliers in the renewable energy sector.
As of June 2023, IREDA's portfolio included term loans amounting to Rs 47,206 crore, spanning across 23 states and five union territories in India. The agency's financial health appears robust, as evidenced by its first half ended September 2023 results, which showed a revenue surge of 47% to Rs 2,320 crore and a profit increase of 41% to Rs 579 crore.
For the fiscal year 2023, IREDA reported operational revenue growth of 22% reaching Rs 3,482 crore, largely due to the expansion of term loans. Net profit for the same period rose by 36% to Rs 865 crore. Additionally, the Capital to Risk (Weighted) Assets Ratio (CRAR) stood at an impressive 18.82% for FY23 and further improved to 19.95% by the June quarter.
The forthcoming IPO is managed by IDBI Capital Markets, BOB Capital Markets, and SBI Capital Markets. Upon completion, IREDA's shares are slated to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing investors with an opportunity to participate in India's burgeoning renewable energy financing market.
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