Lets get started with Indian Renewable Energy IPO or IREDA IPO. The Government owned, Indian Renewable Energy Development Agency Limited is a domestic financial institution that provides financial assistance to renewable energy projects, companies and manufacturers in India for power generation, equipment supply etc.
Indian Renewable Energy Development Agency is planning to raise funds via an IPO in the calendar year 2018. In fact, the company has also filed a first cut of prospectus in December 2017. The details of the IPO like the IPO release date, IPO offer size, IPO offer price, the company financials, the objects of IPO and similar details have been discussed in this article
Indian Renewable Energy Development IPO Review & Ratings
| Indian Renewable Energy Development IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 7.8/10 |
| Industry Ranking | 7.7/10 |
| Company Background | 7.9/10 |
| Company Reputation | 7.7/10 |
| Competitive Edge | 7.2/10 |
| Financial Statements | 7.4/10 |
| Popularity Index | 7.3/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 7.8/10 |
| Top Brokers Review | 7.3/10 |
| Overall Ratings | 7.6/10 |
| Star Ratings | ★★★★☆ |
Summary of Indian Renewable Energy IPO or IREDA IPO
As mentioned above, Indian Renewable Energy Development is a government owned company which basically finances the renewable projects in the country. Indian Renewable Energy Development is coming up with an IPO of 139,000,000 equity shares of face value of Rs. 10 each.
Of this, 695,000 equity shares have been reserved for eligible employees of the agency. Thus the net offer to the public is for 138,305,000 equity shares. The total offering (i.e. 139,000,000) represents the 15.05% of the equity share capital of the company post such issue. The number of shares available for the public represents 14.97% of the post issue equity share paid up capital of the company.
The company has also mentioned that a discount of upto 5% on the offer price would be available to retail individual bidders. A discounted rate is also to be offered to the eligible employees of the company. Along with the offer price, the discounts to be given to all such categories would also be decided by the company in consultation with the lead managers.
The lead managers appointed by the company for this IPO are Yes Securities, Elara Capital, IDBI Capital Markets and SBI Capital Market. The registrar to this offer is Link Intime.
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Indian Renewable Energy Development Agency IPO Date
The IPO process for Indian Renewable Energy Development is in the process of getting finalised. The company has already submitted a draft prospectus and shall move the same at a fast track mode. The release date once finalised will be updated herein.
Indian Renewable Energy Development IPO Subscription
| Subscription | |
| Day 1 | X |
| Day 2 | X |
| Day 3 | X |
| Day 4 | X |
| Day 5 | X |
Upon the release of the IPO, the details of shares subscribed would be updated herein on a daily basis.
Indian Renewable Energy IPO Allotment Status
The allotment status of the shares subscribed by the public will be updated once the bidding process is completed.
Indian Renewable Energy IPO Price Band
The company has not yet finalised on the offer price. Once it is finalised, we shall update this section.
Indian Renewable Energy IPO Issue Size
The IPO size for Indian Renewable Energy Development has not been disclosed yet. The same can be estimated once the IPO offer price is finalised by the company. The details would be accordingly posted hereunder.
Indian Renewable Energy IPO Equity Share Offerings
Indian Renewable Energy Development IPO is offering 139,000,000 equity shares of face value of Rs. 10 each. Out of this, certain part has been reserved for the eligible employees and the net offer to public is 138,305,000.
Indian Renewable Energy Development Agency – Company Overview
Indian Renewable Energy Development Agency Limited is a domestic financial institution with more than 30 years of experience in the Indian renewable energy sector.
The Company provides financial assistance to renewable energy projects, companies and manufacturers in India for power generation, equipment supply and fuel source projects including wind power, solar power, hydro power, biomass, co-generation and waste to energy as well as energy efficiency and conservation.
‘Its comprehensive suite of financial products and services includes various fund-based financial products including long-term and short-term project and manufacturing loans, take out financing, bridge loans and bill discounting, and non-fund based assistance, like performance guarantees, letters of comfort, letters of undertaking and refinancing schemes.
It was established as an integral part of, and have played a strategic role in, the GoI’s initiatives for the promotion and development of the renewable energy sector in India. It has been involved in the development and implementation of various policies and structural and procedural reforms in the renewable energy sector.
Key members of Indian Renewable Energy Development:
- Kuljit Singh Popli (Chairman)
- Satish Kumar Bhargava (Director – Finance)
- Bhanu Pratap Yadav (Director – Government nominee)
- Indu Bala (Independent Director)
- Abhishek Mahawar (Independent Director)
Competitive Strengths of Indian Renewable Energy Development
- Established, Trusted and Innovative Brand
- Strategic role in GoI initiatives in the renewable energy sector
- Favourable credit rating and access to diversified sources of funds
- Comprehensive credit appraisal and risk management policies and procedures
- Track record of consistent financial performance and growth
- Experienced and committed management and employee base with in-depth sector expertise
Business strategy of Indian Renewable Energy Development
- Continue to leverage our industry expertise and relationships to capitalize on the expected growth in the Indian renewable energy sector
- Expand and diversify our products and services
- Continue to improve the credit quality of the loan book
- Continue to focus on improving processes and delivery
- Increase our market visibility to new and existing renewable energy borrowers
Indian Renewable Energy Development Agency – Financial Statements
A summary of the key figures of the company is presented below for analysis:
Assets of the Company
| Assets (in INR & Millions) | |||||
| Mar’17 | Mar’16 | Mar’15 | Mar’14 | Mar’13 | |
| Non-Current Asset | 124,016 | 90,634 | 79,753 | 73,500 | 55,532 |
| Current Asset | 63,019 | 41,376 | 23,076 | 17,307 | 14,361 |
| Total Asset | 187,034 | 132,010 | 102,829 | 90,807 | 69,893 |
Revenue & PAT of the Company
| Revenue & Profits (in INR & Millions) | |||||
| Mar’17 | Mar’16 | Mar’15 | Mar’14 | Mar’13 | |
| Total Revenue | 14818 | 11765 | 10275 | 8954 | 7294 |
| Profit after Tax (PAT) | 3646 | 2978 | 2689 | 2402 | 1926 |
Earnings per Equity Share
| Earning per Equity Share (in INR) | |||||
| Mar’17 | Mar’16 | Mar’15 | Mar’14 | Mar’13 | |
| Basic | 464.64 | 379.51 | 351.11 | 326.92 | 285.99 |
| Diluted | 464.64 | 379.51 | 351.11 | 326.92 | 285.99 |
The total revenues increased from Rs. 7,298.40 million in Fiscal 2013 to Rs. 14,822.10 million in Fiscal 2017, at a CAGR of 19.38%, while the profit after tax increased from Rs. 1,925.92 million in Fiscal 2013 to Rs. 3,645.92 million in Fiscal 2017, at a CAGR of 17.30%.
As of September 30, 2017, our total revenues were Rs. 8,772.30 million and our profit after tax was Rs. 1,429.17 million. The profit after tax as a percentage of average total assets and as a percentage of average net worth were 2.26% and 15.17%, respectively, in Fiscal 2017 and were 1.49% and 11.07%, respectively, in the six months ended September 30, 2017.
Indian Renewable Energy Development Agency Promoters
Indian Renewable Energy Development Agency Limited’s promoter is the President of India acting through the Ministry of New and Renewable Energy. The Promoter, along with its nominees, currently holds 100% of the pre-Issue paid-up equity share capital of our Company.
Since the promoter is the government itself, the interest in the company and the property of the company is not required to be discussed.
Indian Renewable Energy IPO Offer Details or Issue Details
| Offer | Upto 139,000,000 Equity Shares, aggregating to ₹[●] million |
| Of which: | |
| Employee Reservation Portion | Up to 695,000 Equity Shares aggregating up to [●] million |
| Net Issue | |
| Of which: | |
| A. QIB Portion | 69,152,500 Equity Share |
| Of which: | |
| Mutual Fund Portion | 3,457,625 Equity Shares |
| Balance for all QIBs including Mutual Funds | 65,694,875 Equity Shares |
| B. Non-Institutional Portion | Not less than 20,745,750 Equity Shares |
| C. Retail Portion | Not less than 48,406,750 Equity Shares |
| Pre- and post-Offer Equity Shares | |
| Equity Shares outstanding prior to this Offer | 784,600,000 Equity Shares |
| Equity Shares outstanding after this Offer | 923,600,000 Equity Shares |
Indian Renewable Energy IPO or IREDA IPO Issue Object
- Augment our capital base to meet our future capital requirements and on-lending
- General corporate purpose
List of Upcoming IPOs in 2018
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| John Energy IPO | TCNS Clothing IPO | SembCorp Energy IPO | Credit Access Grameen IPO |
Indian Renewable Energy IPO – Basis of the Offer Price
The Issue Price will be determined by the Company in consultation with the lead managers, on the basis of assessment of market demand for the Equity Shares through the Book Building Process and on the basis of quantitative and qualitative factors as described below.
The qualitative factors relevant to decide the issue price:
- Established, Trusted and Innovative Brand
- Strategic role in GoI initiatives in the renewable energy sector
- Favourable credit rating and access to diversified sources of funds
- Comprehensive credit appraisal and risk management policies and procedures
- Track record of consistent financial performance and growth
- Experienced and committed management and employee base with in-depth sector expertise
The qualitative factors relevant to decide the issue price:
- Earning per share – The weighted average EPS for the latest 3 years is 417.43.
- Price/earning ratio
- Return on Net Worth – The weighted average RONW for the latest 3 years is 13.65%
- Net Asset Value – NAV per Equity Share
- Comparison with listed industry peer like Power Finance Corporation, PTC India Financial, L&T Finance Holdings and Rural Electrification. Based on the EPS, the company tops the chart.
List of Latest IPOs of 2018
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Indian Renewable Energy Development IPO Lead Managers
| Lead Managers |
| YES Securities (India) Limited |
| Elara Capital (India) Private Limited |
| IDBI Capital Markets & Securities Limited |
| SBI Capital Markets Limited |
Indian Renewable Energy Development IPO Registrar to offer
| Registrar of the Offer |
| Link Intime India Private Limited |
Indian Renewable Energy IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Repu-tation | Compe-titive Edge | Finan-cial State-ment | Popu-larity Index | Promo-ters Repu-tation |
| Angel Broking | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 |
| Sharekhan | 7.7/10 | 7.6/10 | 7.7/10 | 7.6/10 | 7.7/10 |
| Kotak Securities | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 |
| ICICI Direct | 7.6/10 | 7.6/10 | 7.8/10 | 7.6/10 | 7.6/10 |
| IIFL | 7.6/10 | 7.7/10 | 7.6/10 | 7.6/10 | 7.6/10 |
| Edelweiss | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 | 7.7/10 |
| Zerodha | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 |
| 5Paisa | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 | 7.6/10 |
| Karvy | 7.6/10 | 7.6/10 | 7.7/10 | 7.6/10 | 7.6/10 |
| Motilal Oswal | 7.6/10 | 7.6/10 | 7.7/10 | 7.6/10 | 7.7/10 |
Indian Renewable Energy IPO Grey Market price
Grey market refers to an unofficial market for a security which is not yet listed and is about to list. The grey market generally opens 15 days before the release of the IPO. Accordingly, the grey market for Indian Renewable Energy Development IPO will open 15 days before the IPO is released. The grey market price or the kostak rate are also out in market during this time.
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Indian Renewable Energy Development IPO News
News 1 – Green energy agency IREDA files IPO papers
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