IREDA IPO: Key details, Dates objectives, risks 2023
IREDA is conducting an IPO from November 21, 2023, to November 23, 2023. Each share is priced in the range of ₹30 to ₹32 and has a face value of ₹10 per share. Investors can purchase a minimum of 460 shares for ₹14,720. The total value of this offering is ₹2,150 crores, comprising a fresh issue of ₹1,290 crores.
Key Details on IREDA IPO
| IPO Date | November 21, 2023 to November 23, 2023 |
| Listing Date | December 4, 2023 |
| Face Value | ₹10 per share |
| Price | ₹30-₹32 |
| Lot Size | 460 |
| Total Issue Size | 67,19,41,177 shares |
| Offer for Sale | 268,776,471 shares |
| Issue Type | Book Built Issue IPO |
| Listing at | BSE, NSE |
About IREDA:
IREDA is a PSU with 35+ years of experience in developing and financing renewable energy projects. IREDA plays an important role in supporting the country's transition to a sustainable and environmentally friendly landscape. Its business model revolves around several key functions and strategies:
- Financing Renewable Energy Projects:IREDA primarily provides financial assistance to various renewable energy projects across India. These projects can include solar power plants, wind farms, biomass energy facilities, small hydropower projects, etc. This financial support helps bridge the funding gap and encourages the development of clean energy projects.
- Refinancing existing projects: IREDA also offers refinancing options to developers who have already invested in renewable energy projects. By refinancing these projects, IREDA can free up capital for developers to reinvest in new ventures or expand their existing renewable energy capacity. This approach helps accelerate the growth of the renewable energy sector in India.
- Promoting Green Energy Technologies: One of IREDA's key roles is to promote and facilitate the adoption of green and sustainable energy technologies. The agency actively collaborates with technology providers, research institutions, and industry stakeholders to identify and promote the most efficient and cost-effective renewable energy solutions.
Details of the Offer for Sale by the Selling Shareholders:
| NAME OF THE SELLING SHAREHOLDERS | TYPE | Value of equity shares offered |
|---|---|---|
President of India, acting through the ministry of New & Renewable, Government of India | Promoter Selling Shareholder | Rs.2,150 Crore |
Company’s Financials (Rs, Million):
| Particulars | 2021 | 2022 | 2023 | CAGR |
|---|---|---|---|---|
Profit after tax
| ₹ 3,463.81
| ₹ 6,335.28 | ₹ 8,646.28 | 35.64% |
| Loans Sanctioned | ₹ 110,013 | ₹ 239,211 | ₹ 325,867 | 43.61% |
| Net NPAs (%) | 5.61 | 3.12 | 1.66 | - |
Product analysis of IREDA: (2023)
| Particulars | Term Loans Outstanding (Million) | Percentage of total term loans (%) |
|---|---|---|
| Solar Energy | ₹ 143,488.59 | 30.48% |
| Loan facility to state utilities | ₹ 113, 317.57 | 24.07% |
| Wind Power | ₹ 88,924.90 | 18.89% |
| Hydro Power | ₹ 54,379.08 | 11.55% |
| Manufacturing | ₹ 15,161.74 | 3.21 % |
| Other | ₹ 55,549.12 | 11.8% |