Ireda Board Approves Floor Price For Rs 5,000-Crore QIP
The board approved the floor price of Rs 173.83 per share for the Ireda QIP.
Indian Renewable Energy Development Agency Ltd. set on Thursday the floor price for share sale to institutional investors as the window for the deal opened. The fundraising of up to Rs 5,000 crore will be conducted through qualified institutional placement.
The board approved the floor price of Rs 173.83 per share, according to an exchange filing. The company may offer a discount of not more than 5% on the floor price.
The board also approved the preliminary placement document and the draft of the application form in connection with the QIP.
IDBI Capital Market Services Ltd., BNP Paribas, SBI Capital Markets Ltd., Emkay Global Financial Services Ltd., and Motilal Oswal Investment Advisors Pvt. are the merchant bankers for the Ireda QIP.
The share sale to institutional investors will not dilute more than 7% equity of the government. The proposal was approved in January.
Shares of Ireda closed 1.5% higher at Rs 176.5 apiece on the BSE, compared to a 0.55% rise in the benchmark Sensex. The stock has risen 2% in the last 12 months but has fallen 20% so far this year.
Of the two analysts tracking the company, one maintains a 'buy' rating and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 15%.
