Ireda QIP, IPO Performance Shows High Investor Confidence In India's Renewable Sector: Shripad Naik

The successful execution of Indian Renewable Energy Development Agency Ltd.'s qualified institutional placement and subscription of its intial public offering shows high level of investor confidence in India's renewable energy sector, Union Minister Shripad Yesso Naik said on Tuesday.

Indian Renewable Energy Development Agency raised about Rs 2,005.9 crore by issuing fresh equity shares through the qualified institutional placement route in June, the Minister of State) for New and Renewable Energy said in a reply to the Rajya Sabha.

"The timing and successful execution of Ireda's QIP after its IPO underscores a high level of investor confidence in the company and India's renewable energy sector," said Naik, who is also the MoS for Power. The QIP was subscribed by marquee investors like Life Insurance Corporation 50% which reinforces the long-term institutional confidence in Ireda's business model and sectoral growth.

The inclusion of global financial institutions like Morgan Stanley (9.12) and Societe Generale (8.98) as significant allottees shows that foreign investors also view Ireda as an attractive player in India's renewable energy financing space.

The issue price was Rs 165.14 per equity share. The discount offered was 5% on the floor price (Rs 173.83) amounting to Rs 8.69 per equity share. Following listing at an issue price of Rs 32 per share, Ireda's stock has shown robust gains and continued strength in the secondary market, reflecting investors' optimism around renewable energy financing and confidence in Ireda's financials, asset quality, growth trajectory, robust and transparent corporate governance, Naik said.

In November 2023, Ireda shares made a strong stock market debut, ending with a premium of 87.5% against the issue price.