The shares of renewable energy financing company IREDA listed at a 56.25% premium over the issue price on the exchanges on Wednesday.
The stock debuted at Rs 50 on both NSE and BSE compared with the IPO price of Rs 32.
IREDA extended its gains by 11.4% to Rs 55.7 from its listing price of Rs 50. At the same time, from the issue price, the stock was up 74%.
Ahead of the listing, the company’s shares traded at a premium of Rs 12.25 in the unlisted market.
The IPO received an overwhelming response from investors, having been oversubscribed by 38.8 times, reflecting investor sentiment about the company’s strong fundamentals and growth potential.
Analysts believe India has ambitious renewable energy goals and IREDA is well positioned as the largest green financing NBFC to tap into the rapidly expanding sector growth.
“We believe the listing premium is justified on the back of the company being tagged as a leading PSU player in renewable energy financing and advisory services and a possible upgradation from a Mini Ratna to a Navratna company in the near future which increases financial autonomy, allowing it to accelerate faster in the competition,” said Prashanth Tapse of Mehta Equities.
The proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
IREDA has an impressive track record spanning over 36 years in the field of fostering and providing financial support for fresh and sustainable energy (RE) projects, as well as energy efficiency and conservation (EEC) initiatives.
The company is India’s largest dedicated green financing non-banking financial company (NBFC).
As of June 2023, its portfolio of outstanding term loans stood at Rs 47,206 crore, reflecting its diverse investment ventures. The company has a geographically diversified portfolio, with term loans outstanding across 23 states and five union territories.
For the half year ended September 2023, its revenue jumped 47% to Rs 2,320 crore, while profit increased 41% to Rs 579 crore.
In FY23, the company’s standalone revenue from operations increased 22% to Rs 3,482 crore, primarily due to the growth of its term loans outstanding. Meanwhile, net profit jumped 36% to Rs 865 crore in the same period. The capital to risk-weighted asset ratio (CRAR) stood at 18.82% for FY23 and 19.95% for the June quarter.
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