IREDA IPO, or Indian Renewable Energy Development Agency Ltd., hit the stock market with a bang! When it made its debut today, the share price rocketed to Rs 50 on the National Stock Exchange and the BSE. This is a big deal because it’s 56% more than the IPO price, which was Rs 32.
Before this, the IPO raised a lot of interest. It was like 38.80 times oversubscribed, which means way more people wanted to buy shares than were available. The different kinds of investors, like big institutions and regular folks, all jumped in to get a piece of the action.
Now, after its debut, the share price didn’t just stop at Rs 50. It shot up more than 10% to Rs 55.20. That’s a pretty significant jump, showing how much interest there is in these shares.
The IPO itself was open for subscription from November 21 to November 23. The price range for each share was between Rs 30 and Rs 32. The IPO collected a whopping Rs 643.26 crore from big investors even before it opened to the public. When it opened for everyone else, it got a lot of attention again. The retail investors’ part was oversubscribed by 7.73 times, and other categories like non-institutional investors and big institutions also were heavily oversubscribed.
They made sure that only 50% of the shares were up for grabs for the big institutions, at least 15% for the not-so-big ones, and 35% for regular investors.
The IPO was made up of two parts: some brand-new shares and some existing shares sold by the government. The money raised from the fresh shares will help IREDA grow and give loans in the future.
IREDA’s shares now belong partly to the government, but they’re planning to sell some of their shares. This IPO is a big step for them as it’s not just about raising money, it’s also about being seen as a trustworthy company in the stock market.
The people handling the IPO’s paperwork are Link Intime India Private Ltd, and the lead managers are IDBI Capital Market Services Limited, Bob Capital Markets Limited, and SBI Capital Markets Limited.
Talking about the ‘Grey Market Premium,’ it’s like a sneak peek into what the shares might be worth when they hit the market. It’s currently around +12, suggesting that the shares could be selling for about Rs 44 each. That’s way higher than the IPO price of Rs 32.
Overall, this IPO has been a big success, with a lot of interest from all kinds of investors. It’s a good sign for IREDA and shows that people are excited about renewable energy investments.