Indian Renewable Energy Development Agency Ltd

About Indian Renewable Energy Development Agency Limited  Incorporated in 1987, IREDA is a systemically important non-deposit-taking non-banking finance company (NBFC-ND-SI) with an Infrastructure Finance Company (IFC) status. It is wholly-owned by the Government of India (GoI) under the administrative control of the Ministry of New and Renewable Energy (MNRE).  It provides financial assistance to RE (new and renewable energy) projects and EEC (energy efficiency and conservation) projects. It offers long-term, medium-term and short-term loans, top-up loans, bridge loans, takeover financing, and loans against securitization of future cash flows. Additionally, the bank provides loans to government entities; financing schemes for RE suppliers, manufacturers and contractors; and consulting services on techno-commercial issues relating to the RE sector.  It sources the funding from paid-up equity share capital accounting for ₹ 2,284 crore and borrowings of various maturities from the domestic and international markets.  It caters to multiple segments within the renewable energy industry, such as solar power, wind power, hydropower, transmission, biomass, including bagasse and industrial co-generation, waste-to-energy, ethanol, compressed biogas, hybrid RE, EEC and green-mobility.  In FY23, the bank sanctioned loans amassing a total of ₹ 32,586 crore and 93% of its term loans outstanding, as of 30 September 2023 have security cover.  As of 30 September 2023, the bank had term loans outstanding in 23 states and five union territories. It also operates a 50 MW Solar Photovoltaic Project in Kerala for the Kerala State Electricity Board.  Between FY21 and FY23, it saw a CAGR rise of 9% in its revenue from operations and 35% in its profit. Moreover, the NBFC has played a major role in developing the renewable energy sector in India. This, along with the fact that the government increased focus on expanding renewable capacity to 66% of total power requirement by FY32, could be beneficial for the company.  And now, Indian Renewable Energy Development Agency Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to undertake existing business activities and to undertake the activities proposed to be funded from the net proceeds. Its shares will be listed on the NSE and the BSE.  Here are key details about the Indian Renewable Energy Development Agency Limited IPO:     Company Name  Indian Renewable Energy Development Agency Limited Limited   Company Type  Private    Company Established On  1987   Indian Renewable Energy Development Agency Limited IPO Opening Date  21 November 2023    Indian Renewable Energy Development Agency Limited IPO Closing Date  23 November 2023   Indian Renewable Energy Development Agency Limited IPO Allotment Status  25 November 2023    Credit of Shares to the Demat Account  26 November 2023   Indian Renewable Energy Development Agency Limited IPO Listing Date  29 November 2023    Indian Renewable Energy Development Agency Limited IPO Face Value  ₹10 per share   Indian Renewable Energy Development Agency Limited IPO Lot Size  460 shares    Indian Renewable Energy Development Agency Limited IPO Issue Size  Approx ₹2,150 crore   Indian Renewable Energy Development Agency Limited IPO to be Listed on  BSE, NSE    Indian Renewable Energy Development Agency Limited IPO Price band  ₹30 – ₹32 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 2654 crore  ₹ 2859 crore  ₹ 3481 crore    Net Profit  ₹ 346 crore  ₹ 633 crore  ₹ 864 crore              Here’s a quick look at Indian Renewable Energy Development Agency Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Largest pure-play green financing NBFC in India as of 31 March 2023.  Track record of growth along with diversification of its asset base. As of 31 March 2023, term loans outstanding stood at ₹47,075 crore, which rose at a CAGR of 30% in the last three fiscal years.  Access to diversified and cost-effective long-term source of borrowings as its average cost of borrowing for FY23 was 6.23%.  Strategic role in GoI initiatives as it serves as the implementing agency for key MNRE policies and schemes and acts as the Central Nodal Agency for specific schemes.  Company has an established and trusted brand name with an experience of 36 years.   Risks and threats   Subjected to risks associated with volatility in interest rates.  Dependent on the Indian renewable energy sector for its business growth, which, in general, has many challenges.  India Ratings downgraded the company's bonds to “IND AA+’/Stable” from “AAA/Negative in September 2020. Any further ratings downgrade could impact future business.  RE projects tend to be intermittent, seasonal, prone to vagaries of nature and have inherent risks such as political, regulatory, fiscal, monetary, legal and others.  Subject to periodic inspections by the RBI.  Has experienced negative cash flows from operating and investing activities in FY21, FY22 and FY23.  As of 30 September 2023, its indebtedness aggregated to ₹39,850 crore. High indebtedness could adversely impact a company's business and financial performance.            Indian Renewable Energy Development Agency Limited IPO details  |Indian Renewable Energy Development Agency Limited IPO date  According to the offer document filed by the company with the SEBI, the IREDA IPO’s opening date – in other words, the IREDA IPO launch date – will be 21st November 2023. The IREDA IPO closing date is 23rd November 2023. After this, investors will be updated about the allotment status on 28th November 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 29th November 2023. The IREDA IPO listing date is 1st December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Indian Renewable Energy Development Agency Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The IREDA IPO price band has been set between ₹30 and ₹32 per share. Interested investors can choose a price within this band to apply for the IPO.  The IREDA IPO listing price will be determined on 1st December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Indian Renewable Energy Development Agency Limited IPO Lot size  The IREDA IPO details have been declared. The IREDA IPO lot size is set at 460 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the IREDA IPO issue size is approx ₹2,150 crore.           How to pre-apply for the Indian Renewable Energy Development Agency Limited IPO?  You can pre-apply for the Indian Renewable Energy Development Agency Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Indian Renewable Energy Development Agency Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Indian Renewable Energy Development Agency Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Indian Renewable Energy Development Agency Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Indian Renewable Energy Development Agency Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Indian Renewable Energy Development Agency Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Indian Renewable Energy Development Agency LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Indian Renewable Energy Development Agency Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Indian Renewable Energy Development Agency Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Indian Renewable Energy Development Agency Limited IPO  To apply for the Indian Renewable Energy Development Agency Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Indian Renewable Energy Development Agency Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Indian Renewable Energy Development Agency Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.