Government-Owned IREDA Garners Rs 643 Crore From Anchor Investors

The anchor investors included Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Copthall Mauritius, and Moon Capital Trading.

The government-run firm’s IPO worth Rs 2,150 crore opened for public bidding on November 21, at a price band of Rs 30 to Rs 32 per share and will stop accepting bids on November 23.

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State-run Indian Renewable Energy Development Agency (IREDA) raised Rs 643 crore from anchor investors, a circular uploaded by the Bombay Stock Exchange on Monday night revealed. The company allotted 20,10,19,726 equity shares to 58 funds for Rs 32 per share, the upper end of the price band. 

The circular further mentioned that the anchor investors included Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Copthall Mauritius, and Moon Capital Trading, reported PTI. 

Other domestic mutual funds and insurance firms also took part in the anchor book like HDFC Mutual Fund (MF), ICICI Prudential MF, Kotak MG, Sundaram MF, SBI Life Insurance Company, SBI General Insurance Company, Kotak Mahindra Life Insurance Company, and SBI MF among others. 

The government-run firm’s initial public offering (IPO) worth Rs 2,150 crore opened for public bidding on November 21. The IPO opened at a price band of Rs 30 to Rs 32 per share and will close bidding on November 23. This fresh issue marks the first by a public sector enterprise after Life Insurance Corporation’s IPO earlier last year in May. The public enterprise is aiming to issue up to 40.31 crore fresh shares to raise about Rs 1,290 crore, on the basis of the upper end of the price band. 

Further, the only shareholder, the government of India, will offer around 26.88 crore shares in an offer-for-sale (OFS) to garner Rs 860 crore. The funds collected from the issue will be utilised to augment the company’s capital base to cater its future capital needs and onward lending. About half of the issue size has been kept in reserve for institutional buyers, about 35 per cent for retail investors, and the rest 15 per cent for non-institutional investors. 

IREDA is a mini Ratna enterprise under the Government of India and administratively controlled by the Ministry of New and Renewable Energy. The book-running managers for the issue are BOB Capital Markets Ltd, SBI Capital Markets Ltd, and IDBI Capital Markets and Securities Ltd. The company’s shares will be listed on the BSE and NSE.