IREDA investors gain 87.5% in a day!
Issue price of IREDA was Rs 32 per share while it opened at a premium of 56.25% at Rs 50 on NSE
Miniratna company of Indian government IREDA (Indian Renewable Energy Development Agency) Limited is a bumper success in share market. The investor who got the shares in IPO enjoyed hefty. Issue price of IREDA was Rs 32 per share while it opened at a premium of 56.25% at Rs 50 on NSE. During the trading session it rose further and by the end of 1st day it closed at Rs 60 per share. This implies 87.5% gain from issue price.
On the last day of the Initial Public Offering (IPO) of the Indian Renewable Energy Development Agency Limited (IREDA), the subscription was oversubscribed 38.80 times. Institutional investors subscribed 104.57 times, non-institutional investors 24.16 times, and retail investors 7.73 times. The reserved portion for employees was filled 9.8 times.
The funds raised through the IPO will be utilised to increase IREDA’s capital, enabling it to meet the future capital requirements and further provide loans.
Under the IPO, 40,31,64,706 new equity shares were issued, and 26,87,76,471 shares were sold through an Offer For Sale (OFS). This IPO was the first public offering of a government company after Life Insurance Corporation of India (LIC) in May last year. IREDA is a Mini Ratna government company under the administrative control of the Ministry of New and Renewable Energy.
The company is fundamentally strong and therefore it has seen such a massive response. It is an NBFC company provides financing for renewable energy. Since renewable energy is sunrise sector which is expected to grow at a good pace ahead and this company caters to the renewable energy sector hence there is good growth prospects for the company.