Jobaaj Stories
The Indian Renewable Energy Development Agency (IREDA) launched its initial public offering (IPO) today, November 21st. The shares are priced between Rs.30 to Rs.32, with investors needing to buy at least 460 shares.
IREDA, set up in 1987, provides financing for renewable energy, energy efficiency, and environmental technology projects. It's fully owned by the Indian government.
The IPO is offering 40.32 crore new shares, plus the government is selling 26.88 crore of its existing shares in IREDA. Some shares are also reserved for IREDA employees. The total IPO size is Rs.2,150.21 crore.
There's excitement around the IPO. In unofficial grey market trading, IREDA shares are fetching around Rs.6 premium over the IPO price. This suggests strong investor demand.
On day one, the IPO was 75% subscribed. Retail investors lapped it up, subscribing 1.08 times. Non-institutional investors have subscribed 97%. Qualified institutional buyers are yet to subscribe. Employees have subscribed fully to their portion.
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The IPO seems to have generated interest among investors, especially retail. The government is partially divesting its stake in this renewable energy financier through the IPO. Strong demand on day one indicates investors are keen on IREDA's growth story. Its unique position in financing green energy projects makes it an attractive bet.
Will you be subscribing to these IPOs?
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