Indian Renewable Energy Development Agency's take ahead of IPO

The Indian Renewable Energy Development Agency (IREDA) has successfully raised Rs 643.26 crore from 58 anchor investors just days before its initial public offering (IPO) on November 21.


Among these investors are Goldman Sachs, Societe Generale, and Integrated Core Strategies. Domestic players such as SBI Mutual Fund, HDFC Mutual Fund, and LIC MF also participated in the anchor book.

IREDA has distributed 20,10,19,726 equity shares to anchor investors at a price of Rs 32 per share in cooperation with merchant bankers. The IPO plans to collect Rs 2,150.21 crore through the public offering of 67.19 crore equity shares between November 21 and November 23, with a price band of Rs 30-32 per share.

The IPO includes a fresh issue of 40.31 crore equity shares worth Rs 1,290.13 crore by the company, as well as a Government of India offer-for-sale (OFS) of 26.87 crore shares worth Rs 860.08 crore. Additionally, 18,75,420 equity shares have been reserved for staff, with the net issue omitting this amount being evaluated.

IREDA's financial performance from fiscal years 2021 to 2023 shows a solid 15 percent compound annual growth rate (CAGR) in revenue and an astounding 58 percent CAGR in profit. According to the company's diverse asset book, solar energy accounts for 30% of revenue, wind power accounts for 19%, loans to state utilities account for 24%, and hydropower accounts for 12% for the fiscal year ending March FY23.