Renewable Energy

IREDA IPO: Issue sees 4.56 times subscription on Day 2

Amlan Bibhudatta

Notable because

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.

What to look out for in the months ahead

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?