IREDA IPO (Indian Renewable Energy Development Agency Ltd)
Indian Renewable Energy Development Agency Limited (IREDA)
IREDA IPO Details
IPO Open
21 November 2023
IPO Close
23 November 2023
Price Band
₹30 – ₹32
Issue Size
₹2,150.21 Cr
Market Cap
₹8600.85
Min. Lot Size
460
Face value
₹10
GMP
₹7
IPO Timeline
IPO Open
21 November 2023
IPO Close
23 November 2023
Allotment finalisation
25 November 2023
Refund initiation
26 November 2023
Demat transfer
28 November 2023
Listing
29 November 2023
About Indian Renewable Energy Development Agency Ltd
Indian Renewable Energy Development Agency Limited (IREDA) is a leading public limited government company incorporated in March 1987. IREDA is a Mini Ratna (Category – I) government enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
With over 30 years of experience, IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects. In FY 2021-22, IREDA achieved the highest-ever loan sanctions of around Rs. 23921.06 crores and loan disbursements of around Rs. 16070.82 crores.
IREDA offers a comprehensive range of financial products and related services, from project conceptualization to post-commissioning, for renewable energy (RE) projects and other value chain activities such as equipment manufacturing and transmission.
The company is committed to facilitating the transition towards a greener and more sustainable future, and as a reliable partner, IREDA ensures that its clients receive the best possible support and guidance throughout their projects.
- Established: March 1987
- Type: Public limited government company
- Classification: Mini Ratna (Category – I)
- Ministry: Ministry of New and Renewable Energy (MNRE)
- Financial Milestones (FY 2021-22):
- Loan Sanctions: Rs. 23921.06 crores
- Loan Disbursements: Rs. 16070.82 crores
- Core Business:
- Promoting, developing, and extending financial assistance for RE projects and EE/conservation projects
- Services:
- Comprehensive range of financial products and related services, from project conceptualization to post-commissioning
- Commitment:
- Facilitating the transition towards a greener and more sustainable future
- Client Focus:
- Ensuring clients receive the best possible support and guidance throughout their projects
IREDA’s contributions to India’s RE sector are substantial. It has:
- Financed over 6,000 RE projects with a total capacity of over 100 GW.
- Disbursed over Rs. 1.5 lakh crore ($20 billion) in loans to RE projects.
- Played a crucial role in India achieving its target of 100 GW of installed solar capacity by 2022.
- Contributed significantly to India’s ambitious goal of achieving 450 GW of installed RE capacity by 2030.
IREDA’s commitment to innovation, technology, and sustainable development makes it a key driver of India’s transition towards a clean energy future. With its expertise, experience, and unwavering dedication, IREDA is set to play an even more prominent role in shaping India’s energy landscape.
About IREDA IPO
Indian Renewable Energy Development Agency Limited (IREDA), a leading non-banking financial institution (NBFC) in India’s renewable energy (RE) sector, is set to offer its initial public offering (IPO) on 21 November 2023. The IPO is expected to raise Rs. 2,150.21 crores through a fresh issue of 40.31 crore shares and an offer-for-sale (OFS) of 26.87 crore shares. The price band for the IPO has been set at Rs. 30-32 per share.
IREDA IPO Details
Issue Type: Book-built issue
Issue Size: Rs. 2,150.21 crores
Fresh Issue: 40.32 crore shares aggregating to Rs. 1,290.13 crores
Offer for Sale (OFS): 26.88 crore shares aggregating to Rs. 860.08 crores
Price Band: Rs. 30-32 per share
Minimum Lot Size: 460 Shares
Investment Requirements:
Retail Investors: ₹14,720
Big Non-Institutional Investor: ₹2,06,080 (for 14 lots)
Big Non-Institutional Investor: ₹10,00,960 (for 68 lots)
Key Dates:
IPO Opening Date: 21 November 2023
IPO Closing Date: 23 November 2023
Allotment Finalization: 29 November 2023
Tentative Listing Date: 4 December 2023
Lead Managers and Registrar:
Book Running Lead Managers:
IDBI Capital Market Services Limited
BOB Capital Markets Limited
SBI Capital Markets Limited
Registrar: Link Intime India Private Ltd
Industry Overview
The renewable energy industry is a rapidly growing sector that encompasses the generation of electricity and heat from renewable sources such as solar, wind, geothermal, hydropower, and biomass. This sector is gaining traction due to its potential to mitigate climate change, reduce reliance on fossil fuels, and enhance energy security.
Globally, the renewable energy industry is witnessing significant growth, driven by technological advancements, decreasing costs, and supportive government policies. In 2022, renewable energy accounted for nearly 30% of global electricity generation, and the share is expected to continue rising in the coming years.
Indian Renewable Energy Development Agency Limited (IREDA) is a key player in the Indian renewable energy sector. Established in 1987, IREDA plays a crucial role in promoting, developing, and extending financial assistance for renewable energy and energy efficiency projects in India.
Globally, the renewable energy industry is witnessing significant growth, driven by technological advancements, decreasing costs, and supportive government policies. In 2022, renewable energy accounted for nearly 30% of global electricity generation, and the share is expected to continue rising in the coming years.
Peer Analysis
IREDA operates in a competitive landscape with various other non-banking financial institutions (NBFCs) and banks that provide financial assistance for renewable energy projects. Some of IREDA’s key peers include:
Power Finance Corporation Limited (PFC)
Indian Renewable Energy Fund Limited (IREFL)
REC Limited
Small Industries Development Bank of India (SIDBI)
- Nationalized Banks
IREDA differentiates itself from its peers in several ways:
Exclusive Focus on Renewable Energy: IREDA has a unique focus on the renewable energy sector, providing specialized expertise and experience in financing renewable energy projects.
Strong Government Backing: IREDA is a government-backed company, providing stability and access to preferential financing.
Extensive Track Record: IREDA has a strong track record of financing over 6,000 renewable energy projects with a total capacity of over 100 GW.
Deep Network and Partnerships: IREDA has a strong network of partnerships with various stakeholders in the renewable energy sector, including developers, manufacturers, and investors.
IREDA IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
IREDA IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 460 | ₹14,720 |
| Retail (Max) | 13 | 5980 | ₹191,360 |
| Small HNI (Min) | 14 | 6,440 | ₹206,080 |
| Small HNI (Max) | 67 | 30,820 | ₹986,240 |
| Big HNI (Min) | 68 | 31,280 | ₹1,000,960 |
Financials of Indian Renewable Energy Development Agency Ltd
| Mar 2023 | Mar 2022 | 31 Mar 2021 | |
|---|---|---|---|
| Assets | 50,446.98 | 36,708.41 | 30,293.39 |
| Revenue | 3,483.04 | 2,874.16 | 2,657.74 |
| Profit After Tax | 864.63 | 633.53 | 346.38 |
| Net Worth | 5,935.17 | 5,268.11 | 2,995.60 |
| Reserves and Surplus | 2,310.96 | 1,776.05 | 1,386.12 |
| Total Borrowing | 40,165.23 | 27,613.07 | 24,000.00 |
IREDA’s financials are showing strong growth, with a significant increase in assets, revenue, and profit after tax over the past year. The company’s net worth and reserves and surplus have also increased steadily. This positive financial performance is likely due to the growing demand for renewable energy in India and IREDA’s strong position in the renewable energy financing sector.
Looking forward, IREDA is well-positioned to continue its growth trajectory. The company has a strong track record, a strong government backing, and a deep network of partnerships. IREDA is also well-capitalized and has a strong balance sheet. These factors will help the company to capitalize on the growing demand for renewable energy in India and achieve its ambitious growth targets.
Here are some specific data of IREDA’s financial performance:
Assets have increased by 37% from March 2022 to March 2023.
Revenue has increased by 21% from March 2022 to March 2023.
Profit after tax has increased by 36% from March 2022 to March 2023.
Net worth has increased by 13% from March 2022 to March 2023.
Reserves and surplus have increased by 30% from March 2022 to March 2023.
Overall, IREDA’s financials are very positive and the company is well-positioned for continued growth.
Objective of the IPO
Based on the information available in the RHP, these are the objective of the IPO.
The fresh issue of shares aims to enhance IREDA’s capital base to meet the future capital requirements as the company expands its operations in the dynamic renewable energy sector.
With the proceeds from the IPO, IREDA intends to increase its lending capacity to support the growing demand for renewable energy projects across India, thus contributing significantly to the country’s green energy goals.
Promoter Share Holding Pattern
Pre IPO
Post IPO
Currently the President of India is the promotor of Indian Renewable Energy Development Agency Ltd holding 100% shares. Post IPO 75% shares would be diluted.
Legal Issues
Based on publicly available information, here is a summary of some of the outstanding legal cases involving IREDA:
IREDA vs. M/s KSK Energy Ventures Limited: This case relates to a dispute over a loan disbursed by IREDA to KSK Energy Ventures Limited for the construction of a solar power plant. IREDA has alleged that KSK Energy Ventures Limited has defaulted on its loan repayments and has initiated legal proceedings to recover the outstanding amount.
IREDA vs. M/s Moser Baer Photovoltaic Limited: This case involves a dispute over a loan agreement between IREDA and Moser Baer Photovoltaic Limited for the manufacturing of solar cells. Moser Baer Photovoltaic Limited has filed a winding-up petition against IREDA, claiming that the company has failed to make timely loan repayments.
IREDA vs. M/s Surya Renewable Energy Private Limited: This case relates to a dispute over a loan agreement between IREDA and Surya Renewable Energy Private Limited for the construction of a solar power plant. IREDA has alleged that Surya Renewable Energy Private Limited has failed to fulfill its contractual obligations and has initiated legal proceedings to recover the outstanding amount.
IREDA vs. M/s Satish Kumar Agarwal: This case involves a dispute over a loan agreement between IREDA and Satish Kumar Agarwal for the construction of a wind power plant. IREDA has alleged that Satish Kumar Agarwal has defaulted on his loan repayments and has initiated legal proceedings to recover the outstanding amount.
IREDA vs. M/s Sterling Energy Systems Private Limited: This case relates to a dispute over a loan agreement between IREDA and Sterling Energy Systems Private Limited for the construction of a biomass power plant. IREDA has alleged that Sterling Energy Systems Private Limited has failed to comply with the terms and conditions of the loan agreement and has initiated legal proceedings to recover the outstanding amount.
Please refer to page 574 of the RHP for more detailed information.
FAQ on IREDA IPO
The IREDA IPO is scheduled to open on 21 November 2023, and close on 23 November 2023.
IREDA IPO price band shares is set at ₹30 to ₹32 per share.
The minimum lot size for IREDA IPO is 460 shares.
The IREDA IPO has an issue size of ₹2,150.21 crores.
The market cap of IREDA, as per the IPO details, is ₹8,600.85 crores.
The tentative listing date for IREDA IPO is December 4, 2023.
The lead managers for the IREDA IPO are IDBI Capital Market Services Limited, BOB Capital Markets Limited, and SBI Capital Markets Limited.
The GMP for IREDA IPO shares is ₹7.
A retail investor needs to invest a minimum of ₹14,720 in the IREDA IPO.
The objective of the IREDA IPO is to enhance the company’s capital base to meet future capital requirements and increase lending capacity to support the growing demand for renewable energy projects.
The President of India is the current promoter of IREDA, holding 100% shares. Post IPO, the shareholding would be diluted to 75%.
As of March 2023, IREDA has shown strong financial growth, with increased assets, revenue, and profit after tax. Assets have increased by 37%, revenue by 21%, and profit after tax by 36%.
IREDA differentiates itself by having an exclusive focus on renewable energy, strong government backing, an extensive track record of financing over 6,000 projects, and a deep network of partnerships.
Retail investors are offered not less than 35% of the net issue in the IREDA IPO.
IREDA plays a crucial role in promoting, developing, and financing renewable energy projects. It has financed over 6,000 projects, disbursed significant loans, and contributed to India’s ambitious renewable energy targets.
IREDA IPO listing date is scheduled on 29 November 2023.
