IREDA’s IPO to open tomorrow

The NBFCND-SI sets price band at Rs30 to Rs32 per Equity Share

Pradip Kumar Das, CMD of IREDAKumar Das, CMD of IREDA

FinTech BizNews Service   

Mumbai, November 20, 2023: Indian Renewable Energy Development Agency Limited, a Government of India (“GoI”) enterprise notified as a “Public Financial Institution” (“PFI”) registered as a Systemically Important Non-Deposit-taking Non-Banking Finance Company (a “NBFCND-SI”), with Infrastructure Finance Company (“IFC”) status, has fixed the price band at Rs30 to Rs32 per Equity Share for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open for public on Tuesday, November 21, 2023, for subscription and close on Thursday, November 23, 2023. Investors can bid for a minimum of 460 Equity Shares and in multiples of 460 Equity Shares thereafter.

The Public Issue of face value of Rs10 per Equity Share comprises of fresh issuance of Equity Shares up to 403.16 million and an Offer for Sale (OFS) of up to 268.78 million aggregating to up to 671.94 million equity shares.

IREDA is a financial institution with over 36 years of experience in promoting, developing and extending financial assistance for new and renewable energy projects, and energy efficiency and conservation projects. It 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.

It is also India's largest pure-play green financing NBFC in India. IREDA is the issuer of first debt security (green masala bond) in India listed on IFSC exchange. IREDA is the first financial institution in India to raise green masala bonds IREDA is among the first financial institution to raise global funds for climate financing from DFIs / multilaterals in India.

It has a geographically diversified portfolio, with Term Loans Outstanding across 23 States and five Union Territories across India, as of September 30, 2023, and has four strategically located branches in Mumbai, Hyderabad, Chennai, and Bhubaneshwar to maximize geographical range in terms of territory.

IREDA also extends lines of credit to other non-banking financial companies (NBFCs) for lending to RE and EEC projects. Additionally, it offers loans to government entities and financing schemes for RE suppliers, manufacturers, and contractors, while non-fund-based products comprise instruments like letters of comfort, letters of undertaking, payment on order instruments, and guarantee assistance schemes. As of September 30, 2023, it had a diversified portfolio of term loan outstanding amounting to Rs 47,514.48 crore.

For the fiscal year 2023, the net interest income increased to Rs 1323.76 crore against Rs 1128.04 crore a year ago. Net profit increased from Rs 633.53 crore in fiscal 2022 to Rs 864.63 crore in fiscal 2023. Capital to risk-weighted asset ratio (“CRAR”) stood at 18.82% for Fiscal 2023 and for the six months ended September 30, 2023, it was 20.92%.

For the six months ended September 30, 2023, Net Interest Income stood at Rs 785.42 crore, and profit after tax was Rs 579.31 crore. For the same period, IREDA sanctioned total loans amounting to Rs 4,744.50 crore.

Notes for Reference: 

Issue Size of the IPO based on the upper and lower end of the price band

IDBI Capital Markets & Securities Limited, BOB Capital Markets Limited, and SBI Capital Markets Limited are the book-running lead managers.