The initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) witnessed a robust response from investors during its bidding process.
Indian Renewable Energy Development Agency (IREDA) IPO continued to receive a robust response from investors. The issue was subscribed 4.56 times on the second day of bidding, November 22, 2023.
About 50% of IREDA IPO will be available for allocation on a proportionate basis to qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
With a loan book size of Rs 47,515 crore, IREDA lends to the sole sector of renewable energy in India thereby making it the country’s largest pure-play green energy financer. It has significantly improved asset quality over the past three years. The lender operates in a high-growth sector given the government’s thrust on green energy. Given these factors and a reasonable valuation, long term investors may consider the IPO.