Here’s all you need to know about India’s first PSU issue in 18 months
The Initial Public Offering of Indian Renewable Energy Development Agency (IREDA) opens for subscription on Tuesday (November 21). The issue will close on Thursday, November 23.
Ahead of the IPO, the company has mobilised ₹643 crore from anchor investors.
IREDA’s IPO comprises of a fresh issue of 40.3 crore shares along with an Offer for Sale of 26 crore shares of face value of ₹10 each. Price band for the issue has been fixed between ₹30 – ₹32 per share and investors can bid in lots of 460 shares and in multiples thereof.
At the current price band, the post issue implied market capitalisation of the company would range between ₹8,063 crore and ₹8,601 crore.
Here’s a look at the SWOT analysis of the company:
IREDA would look to take advantage of the large scale opportunities present in the renewable energy sector. A recent study estimates a funding requirement of $223 billion over the next eight years just to meet solar and wind capacity targets of 2030.
Here’s how IREDA compares with its other listed peers like REC & PFC:
|Net Interest Margin||3.36%||3.45%||3.37%|
|Provision Coverage Ratio||48.11%||69.37%||72.82%|
|Price to Book Value||1.09x||1.46x||1.44x|
Here’s how the company’s asset quality has fared:
|Gross NPA (%)||5.2||3.2||5.1||3.1|
|Net NPA (%)||3.1||1.7||2.7||1.7|
|Provision Coverage Ratio (%)||41.5||49.3||47.6||48.1|
(Edited by : Hormaz Fatakia)
First appeared on www.cnbctv18.com