IREDA IPO Review. Get all details here

  • IREDA is a pioneering financial institution in the field of promoting, developing, and extending financial assistance for setting up projects relating to new and renewable sources of energy, energy efficiency & conservation in India.
  • The company filed a Draft Red Herring Prospectus filing: September 7, 2023
  • Only government company that finances and supports renewable resources companies. Well-established company with a strong track record.
  • Monopoly business – MiniRatna company of Indian government.
  • Lowest net NPA Ratio of 1.66 % during last 10 years
  • AAA (Stable) credit rating from ICRA
  • Strong growth potential for this business in India and competition is low.
  • I would invest in the company during the IPO process.

IREDA DRHP filed on 7th September 2023 to float its Initial public offering. According to DRHP, this IPO consists of an offer for the sale of 268,776,471 Equity Shares and a fresh issue of 403,164,706 shares. Promoter “The President of India, acting through the Ministry of New and Renewable Energy, Government of India” is selling stake as OFS.

The net proceeds from this IPO from the Fresh Issue will be utilized towards augmenting our capital base to meet future capital requirements and onward lending.

IREDA IPO review: Do you invest?

  • IREDA is a pioneer in promoting, financing and developing renewable energy organizations in India with over 36 years of experience in the industry.
  • Global renewable energy market size is expected to grow from USD 900 Billion in 2022 to USD 3200 Billion by 2030.
  • India’s renewable energy market size is expected to be worth up to $80 billion by 2030 from around $20 billion in 2022.
  • The Government of India has set a target to achieve a 500 GW renewables target before 2030 from around 180 GW in 2022.
  • Foreign direct investment (FDI) in India’s renewable energy sector stood at $251 million/  Rs 20.5 billion in the third quarter (Q3) of the financial year (FY) 2023.
  • There is a huge market to capture for this company.
  • The company has recorded strong revenue growth over the years.
  • The Gross and net NPA of the company has decreased from 10.08% and 7.18% in 2019-20 to 3.21% and 1.66% in 2022-23 respectively.
  • Considering the above factors IREDA is a strong company to invest in.
  • I would like to invest in its IPO both for listing gain and long-term investment.