IREDA Shares Hit Upper Circuit On Debut, Rise 87.5% Over IPO Price

Shares of Indian Renewable Energy Development Agency Ltd. closed at a premium of 87.5% over the issue price after registering a stellar market debut on Wednesday.

The shares ended at Rs 60 apiece on NSE, while the issue price was set at Rs 32 per share.

The stock hit an upper circuit of 20% at Rs 60 apiece, as compared to a 0.79% advance in the NSE Nifty 50 as of 1:44 p.m.

IREDA shares opened at Rs 50 apiece on both exchanges, marking a premium of 56.25% to its IPO price, suggesting strong demand for the first government-owned company going public in 18 months since Life Insurance Corp.

The Rs 2,150 crore IPO was subscribed 38.80 times on its third and final day. The bids were led by institutional investors (104.57 times), non-institutional investors (24.16 times), portion reserved for employees (9.8 times), and retail investors (7.73 times).

The government is considering granting Indian Renewable Energy Development Agency Ltd. the 'Navratna' status, according to Chairman Pradip Kumar Das.

The state-run non-banking financial services company was upgraded to 'Schedule A' category public sector enterprise from 'Schedule B' in September.

Incorporated in 1987, IREDA is a Mini Ratna (category I) and a non-banking financial institution that promotes, develops and extends financial assistance for new and renewable projects. It operates in four key sectors: solar, wind, hydro, biomass, biofuels and cogeneration.

As of September 2023, the total term loans outstanding stood at Rs 47,514.48 crore. The term loan outstanding compounded annual growth rate between FY21 and FY23 stands at 30%.

The company has sanctioned loans worth Rs 4,744.5 crore for the six months ended in September 2023, and the loans sanctioned in FY23 stood at Rs 32,586.6 crore. Loans disbursed as of FY23 and six months ended September 2023 stand at Rs 216,39.2 crore and Rs 6,273.3 crore, respectively.

The net interest margin and net NPA as of March 2023 stood at 3.32% and 1.66%, respectively