IREDA IPO: Issue sees 4.56 times subscription on Day 2

In a boost to India’s clean energy industry, IREDA’s IPO saw almost a 5x oversubscription on day 2 of bidding. After filing its IPO papers recently, the company invited bidding for shares worth ~USD 260 mn, comprising an offer for sale as well as a fresh issue of equity. IREDA became the first public-sector undertaking (PSU) to conduct an IPO in the last 18 months.

In an earlier announcement, IREDA had stated its plans to go public by next March, but it brought its IPO forward. Will a successful issuance prompt other PSU lenders to tap public markets through follow-on fresh issuances of equity?