IREDA IPO Oversubscribed 38.80 Times as Investors Show Confidence in India’s Renewable Energy Sector
The Indian Renewable Energy Development Agency’s (IREDA) initial public offering (IPO) concluded yesterday with an overwhelming response from investors, underscoring robust confidence in India’s renewable energy sector. The state-run non-bank lender’s IPO was oversubscribed by a staggering 38.80 times, driven by substantial demand across all categories of investors.
IREDA aimed to raise ₹2,150.21 crore ($258 million) through the IPO, marking the first government-run company IPO since the Life Insurance Corporation’s debut last year. This capital infusion is intended to bolster IREDA’s capacity to finance India’s ambitious renewable energy goals.
Impressively, the final day of bidding saw immense participation from Qualified Institutional Buyers (QIBs), who subscribed 104.57 times their allocated share quota. Non-Institutional Investors (NIIs) and retail investors also showed strong interest, with subscriptions reaching 24.16 times and 7.73 times their respective quotas.
IREDA Employees also displayed keenness, subscribing 9.80 times the portion set aside for them. The total number of bids exceeded 18 billion, significantly surpassing the approximately 0.5 billion shares on offer. Retail bids alone approached 2 billion shares, more than eightfold their allotment of 234 million shares.
IREDA’s elevation to ‘Schedule A’ status and designation as a Navratna public sector enterprise, with financial autonomy and stringent corporate governance practices, likely contributed to the high level of investor interest.
The IPO consisted of fresh issues of shares and an offer for sale (OFS) from the Indian government through the Ministry of New and Renewable Energy. Prior to its stock market debut scheduled for early December, IREDA has demonstrated solid financial performance with over forty percent profit growth and an approximate fifty percent rise in interest income.
Investors eagerly anticipate the share allotment date on November 29 and the commencement of trading on stock exchanges on December 4. The success of IREDA’s IPO reflects the market’s optimism regarding the prospects of renewable energy financing in India.
