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Indian Renewable Energy Development Agency Limited (IREDA) is state-owned Non-Banking Financial Company planning to raise up to Rs 2,150.21 crore through an initial public offering (IPO). The subscription for the IPO will be open from November 21 to November 23, 2023. The price band is fixed at Rs 30 – Rs 32 per share.
The IPO consist of offer for sale of equity shares worth up to Rs 860.08 crore and fresh issue of shares worth up to Rs 1,290.13 crore. The face value of each share is Rs 10 and the size of one lot is 460 shares.
Company Summary
Indian Renewable Energy Development Agency Limited (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). The company is a Public Financial Institution, registered as a Systemically Important non-deposit taking Non-Banking Financial Company (NBFC), with Infrastructure Finance Company status.
The financial institution has over 36 years of experience in promoting, developing and extending financial assistance for new and renewable energy projects, and energy efficiency and conservation projects. The company provides a comprehensive range of financial products and related services, from project conceptualisation to post-commissioning, for renewable energy projects and other value chain activities, such as equipment manufacturing and transmission.
IREDA funds projects across multiple Renewable Energy (RE) sectors such as solar power, wind power, hydro power, transmission, biomass including bagasse and industrial co-generation, waste-to-energy, ethanol, compressed biogas, hybrid RE, EEC and green-mobility. The company also offer financial products and schemes for new and emerging RE technologies such as, biofuel, green hydrogen and its derivatives, battery energy storage systems, fuel cells, and hybrid RE projects.
The NBFC offers a comprehensive suite of financial products and services including various fund-based and non fund-based products. Some of its key fund-based products for RE developers are long-term, medium-term and short-term loans for projects, manufacturing and equipment financing, top-up loans, bridge loans, takeover financing, and loans against securitization of future cashflows.
It also provides line of credit to other NBFCs for on-lending to RE and energy efficiency and conservation (EEC) projects. In addition, IREDA provide loans to government entities and also provide financing schemes for RE suppliers, manufacturers and contractors. Its non fund-based products include letter of comfort, letter of undertaking, payment on order instruments and guarantee assistance schemes. Further, IREDA provides consulting services on techno-commercial issues relating to the RE sector.
As of September 30, 2023, the company has a diversified portfolio of term loans outstanding, amounting to Rs 47,514.48 crore.
Company Strengths
- Track record of consistent growth in loan book and stable profitability in the Renewable Energy financing space in India.
- Diversified asset book in terms of sectoral split and geography and stable profitability.
- Strategic role in Government of India initiatives in the Renewable Energy sector.
- Established and trusted brand name operating in a rapidly expanding sector.
- Robust IT infrastructure with an Enterprise Resource Planning System to provide borrowers with a streamlined and time efficient loan application process.
- Comprehensive data-based credit appraisal process and risk-based pricing, with efficient post-disbursement project monitoring and recovery processes.
- Access to diversified and cost-effective funding options with a judicious approach towards asset-liability management.
- Experienced management with in-depth sector expertise and professionally qualified employee base.
Company Financials
Period Ended | Apr-Sept FY24 | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 51,208.36 | 50,446.98 | 36,708.41 | 30,293.39 |
Total Revenue (Rs in crore) | 2,320.46 | 3,483.04 | 2,874.16 | 2,657.74 |
Net Interest Income (Rs in crore) | 785.42 | 1323.77 | 1128.04 | 992.22 |
Profit After Tax (PAT) (Rs in crore) | 579.32 | 864.63 | 633.53 | 346.38 |
Net Worth (Rs in crore) | 6,580.61 | 5,935.17 | 5,268.11 | 2,995.60 |
Total Borrowing (Rs in crore) | 39,850.19 | 40,165.23 | 27,613.07 | 24,000.00 |
Return on Assets | 1.14% | 1.98% | 1.89% | 1.20% |
Return on Equity | 9.26% | 15.44% | 15.33% | 12.56% |
Capital Adequacy Ratio | 20.92% | 18.82% | 21.22% | 17.12% |
Net NPA | 1.65% | 1.66% | 3.12% | 5.61% |
Purpose of the IPO
- The company plans to utilise the net proceeds from fresh issue of shares towards augmenting its capital base to meet future capital requirements and onward lending.
- The company expects to achieve the benefits of listing of the equity shares on the stock exchanges, to enhance the brand image among its existing and potential customers and creation of a public market for its shares in India.
- Moreover, the proceeds from offer for sale of up to 26,87,76,471 equity shares shall be received by the promoter selling shareholder and will not form part of the net proceeds.
Company Promoters
Promoter of the company is the President of India, acting through the Ministry of New and Renewable Energy, Government of India.
IPO Details
IPO Subscription Date | November 21, 2023 to November 23, 2023 |
Face Value | Rs 10 per share |
Price Band | Rs 30 to Rs 32 per share |
Lot Size | 460 Shares |
Total Issue Size | 67.19 crore shares aggregating up to Rs 2,150.21 crore |
Fresh Issue | 40,31,64,706 shares aggregating up to Rs 1,290.13 crore |
Offer for Sale | 26,87,76,471 shares of Rs 10 aggregating up to Rs 860.08 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 460 | Rs 14,720 |
Retail (Maximum) | 13 | 5980 | Rs 1,91,360 |
Small HNI (Minimum) | 14 | 6,440 | Rs 2,06,080 |
Small HNI (Maximum) | 67 | 30,820 | Rs 9,86,240 |
Large HNI (Minimum) | 68 | 31,280 | Rs 10,00,960 |
Allotment Details
Event | Date |
Allotment of Shares | November 29, 2023 |
Initiation of Refunds | November 30, 2023 |
Credit of Shares to Demat Account | December 1, 2023 |
Listing Date | December 4, 2023 |
To check allotment, click here