IREDA
Mainboard₹2,150 Cr issue
+56.25%
Listing gain over issue price
Issue size
₹2,150 Cr
1 lot at cut-off
₹14,720
Lot size
460shares
Allotment
24 Nov 2023
Listing
29 Nov 2023
Listing performance
Issue price
₹32
Listed at
₹50
Listing-day close
₹60
Latest price
₹100.27
Close on 23 Oct 2026
Listing gain
+56.25%
Return since issue
+213.34%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 29 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹32 per share
- Lot size
- 460 shares
- Total issue size
- ₹2,150 Cr
- Market cap at offer price
- ₹8,601 Cr
- Promoter holding
- 100.00% → 75.00% pre-issue → post-issue
- ISIN
- INE202E01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- IDBI Capital Markets & Securities Ltd.
- Registered office
- India Habitat Centre, East Court, Core 4A, 1stFloor, Lodhi Road, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 20,10,19,726 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 460 shares per lot, in multiples, at ₹32
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 460 | ₹14,720 |
| Retail (max) | 13 | 5,980 | ₹1,91,360 |
| S-HNI (min) | 14 | 6,440 | ₹2,06,080 |
| S-HNI (max) | 67 | 30,820 | ₹9,86,240 |
| B-HNI (min) | 68 | 31,280 | ₹10,00,960 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
20,10,19,726
Anchor portion
₹643 Cr
at ₹32 per share
Valuation and performance
Valuation at offer price
₹32 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.78 | — |
| P/E (×) | 8.47 | — |
| Market cap | — | ₹8,601 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 15.44%
- Debt / equity
- 6.77
- NAV per share
- ₹25.98
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About IREDA
Indian Renewable Energy Development Agency Limited (IREDA) is a public financial institution incorporated in 1987 and registered as a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC) with Infrastructure Finance Company (IFC) status under the administrative control of the Ministry of New and Renewable Energy (MNRE). With over 36 years of experience, IREDA promotes, develops, and extends financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects. The company provides a comprehensive range of financial products and related services spanning from project conceptualization to post-commissioning, serving the renewable energy sector and related value chain activities such as equipment manufacturing and transmission infrastructure.
Company Analysis
from RHPIREDA is a Government of India enterprise providing comprehensive financial products and services for renewable energy projects, energy efficiency, conservation, and related value chain activities including equipment manufacturing and transmission.
Indian Renewable Energy Development Agency Limited (IREDA) is a public financial institution incorporated in 1987 and registered as a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC) with Infrastructure Finance Company (IFC) status under the administrative control of the Ministry of New and Renewable Energy (MNRE). With over 36 years of experience, IREDA promotes, develops, and extends financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects. The company provides a comprehensive range of financial products and related services spanning from project conceptualization to post-commissioning, serving the renewable energy sector and related value chain activities such as equipment manufacturing and transmission infrastructure.
renewable energy financesolar energywind energyhydro energybiomass and waste-to-energyenergy efficiency and conservationnon-banking financial institutionsinfrastructure finance
Objects of the Issue
- Augmenting our capital base to meet our future capital requirements and onward lending p.27
- Repayment of borrowings p.84
- Funding capex for renewable energy infrastructure p.84
- General corporate purposes p.84
- Augmenting our capital base to meet our future capital requirements and onward lending p.117
- Not specified in this DRHP section
- Funding capex / Repayment of borrowings / General corporate purposes p.507
Issue Structure
- Total Issue
- Up to 671,941,177 Equity Shares aggregating up to ₹[●] million
- Fresh Issue
- Up to 403,164,706 Equity Shares aggregating up to ₹[●] million
- Offer for Sale
- Up to 268,776,471 Equity Shares aggregating up to ₹[●] million
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
IREDA earns revenue primarily through interest income on term loans disbursed to renewable energy projects and related activities. As of September 30, 2023, interest income represented 99.65% of total income. The company finances projects and schemes for generation of energy through renewable sources including solar, wind, hydro, biomass, co-generation, and emerging technologies, as well as projects involving energy efficiency and conservation measures. Revenue is generated from the spread between interest earned on loans and interest expended on borrowings.
Business Segments
Financing of projects and schemes for the generation of energy such as solar, wind, hydro, biomass, co-generation and new and emerging technologies through utilization of renewable sources of energy and projects involving energy efficiency and conservation measures
Solar power project financing
Loan facility to State Utilities for power distribution
Wind energy project financing
Hydroelectric power project financing
Provides financial assistance for new and renewable energy projects including solar, wind, hydro, and bioenergy projects
Provides financial assistance for energy efficiency and conservation projects
Provides finance to grid-connected ground-mounted projects, grid-connected rooftop projects and off-grid solar power projects, usually financing 75% of total solar project cost with structured repayment schedules for long-term tenure of 15-20 years
Provides finance to wind power projects usually for 75% of total wind project cost with structured repayment schedules for long-term tenure of up to 25 years
Provides financing for hydroelectric power projects classified as large, medium and small hydro projects, with exposure limits up to 50% for greenfield projects and up to 80% for small hydro projects with specific criteria
Provides term loans of tenure up to five years (excluding moratorium) to state-owned utility companies to meet renewable purchase obligations, for procurement of RE power, payment to RE generators, and setting up RE infrastructure
Provides term loans for manufacturing projects with security through mortgage on land and buildings and hypothecation of assets including plant and machinery
Provides financing for setting up new distilleries and expansion of existing distilleries for production of first generation ethanol using sugarcane juice, sugar, sugar syrup, molasses or damaged food grains, financing up to 95% of project cost
Provides financing for hybrid wind and solar RE projects
Provides financial assistance towards manufacturing and assembling plants for electric mobility, charging infrastructure and manufacturing, battery energy storage systems and manufacturing of batteries and associated components
Finances implementation of eligible transmission projects for evacuation of power, providing funding up to 90% for government entities and 80% for private sector entities
Financing of solar energy projects and solar photovoltaic installations; company also owns and operates a 50 MW solar photovoltaic project in Kerala
Providing loan facilities to government entities and central public sector undertakings for renewable energy projects
Financing of wind energy, hydro power, biomass, waste-to-energy, energy efficiency and other renewable energy projects
Provides loans and advances to renewable energy and energy efficiency project developers; includes interest income on loans, fees and commission income
Generation and sale of solar power through a 50 MW solar plant at Kasargod, Kerala under a Power Purchase Agreement with Kerala State Electricity Board Limited
Financing of solar power projects
Financing of wind power projects
Financing of hydro power projects
Financing of transmission infrastructure
Financing of biomass including bagasse and industrial co-generation projects
Financing of waste-to-energy projects
Financing of energy efficiency and conservation projects
Financing of emerging RE technologies including green hydrogen, battery energy storage systems, fuel cells, and hybrid RE projects
Provides term loans to renewable energy and energy efficiency projects including solar, wind, and hydro power generation
Operates a 50 MW solar photovoltaic power project at Kasaragod, Kerala
SWOT Analysis
Strengths
- • Largest and oldest dedicated renewable energy financier in India(p.63)
- • Strong capital base and profitability growth trajectory(p.63)
- • Diversified renewable energy loan portfolio across multiple sectors(p.49)
- • Significant NPA reduction and improving asset quality(p.50)
- • High proportion of secured lending portfolio(p.54)
- • Government backing as a Public Financial Institution(p.64)
- • Government-owned public financial institution with 36+ years of experience in renewable energy financing(p.118)
- • Track record of improving asset quality with declining NPAs(p.127)
- • Strong profitability and return metrics with improving margins(p.127)
- • Solid capital adequacy ratio above regulatory minimum(p.118)
- • Digitized processes and pan-India presence for operational scalability(p.124)
- • Vast solar potential with significant untapped capacity(p.161)
- • Falling renewable energy tariffs due to technological improvements(p.163)
- • Strong wind power potential with repowering opportunities(p.168)
- • Improving CUF in wind generation through modern turbine technology(p.169)
- • Hydroelectric power provides flexible, stable generation and storage(p.173)
- • Large pumped hydro storage potential for energy balancing(p.171)
- • Government support through ambitious targets and subsidies(p.164)
- • High international investor interest in renewable energy sector(p.164)
- • Largest pure-play green financing NBFC in India with diversified portfolio(p.227)
- • Consistent growth track record with 30% CAGR in term loans outstanding(p.227)
- • Strong asset quality with declining NPA trend(p.225)
- • Strategic role as implementing agency for key government schemes(p.225)
- • Access to diversified, cost-effective long-term funding sources(p.233)
- • Highly rated debt instruments and strong credit credentials(p.226)
- • Experienced senior management with 25-30 years average sector experience(p.234)
- • Geographically diversified portfolio across 23 states and 5 union territories(p.227)
- • Diversified renewable energy lending portfolio across multiple sectors(p.332)
- • Improving asset quality with declining NPA ratios over time(p.317)
- • Strong capital adequacy with CRAR consistently above regulatory minimums(p.321)
- • Established government backing as Mini Ratna Category-I enterprise(p.354)
- • Growing loan portfolio with strong lending operations(p.375)
- • Significant debt securities outstanding providing capital market access(p.388)
- • Government backing as 100% government-owned entity(p.397)
- • Diversified funding sources including multilateral development banks(p.393)
- • Over 36 years of experience in renewable energy financing(p.525)
- • Strong asset growth with consistent profitability and improved asset quality(p.526)
- • Diversified financial products across renewable energy value chain(p.526)
- • Government backing and Mini Ratna (Category I) status(p.525)
- • Designation as Central Nodal Agency for key national schemes(p.526)
- • Strong revenue growth with CAGR of 14.48% in interest income(p.526)
- • Rapid profit growth with 57.99% CAGR in PAT(p.526)
- • Strong loan portfolio growth driven by renewable energy lending(p.550)
- • Improved asset quality with declining NPAs(p.550)
- • Revenue growth outpacing expense growth(p.550)
- • Strong capital adequacy position(p.559)
- • Significant profit growth(p.552)
- • Mini-Ratna status providing government backing(p.591)
Weaknesses
- • High concentration in top borrowers and sectors creates credit risk(p.50)
- • Significant NPA concentration in specific sectors(p.51)
- • Ongoing litigation and contingent liabilities(p.59)
- • Operational dependence on third parties for solar project operations(p.56)
- • High foreign currency borrowings exposure despite hedging(p.61)
- • Limited tax benefits and regulatory exemptions may not continue(p.65)
- • Historical corporate records for equity share allotments not traceable(p.103)
- • High debt-to-equity leverage ratio(p.127)
- • Significant concentration in gross loan portfolio growth variability(p.126)
- • Net interest margin compression over time(p.127)
- • High dependence on imported solar components(p.164)
- • Heavy reliance on China for solar module imports(p.165)
- • Disruption from ALMM mandate affecting project completion(p.165)
- • Weak DISCOM finances delaying payments to power generators(p.164)
- • Long gestation periods causing hydro project delays(p.173)
- • Land constraints and transmission infrastructure limitations for wind projects(p.169)
- • High dependence on few large borrowers(p.246)
- • Exposure to single largest borrower at 3.86% of loan book(p.246)
- • High leverage with debt-to-equity ratio of 6.06 as of September 30, 2023(p.233)
- • Revenue decline from solar project operations(p.250)
- • Still managing legacy NPA portfolio despite improvements(p.261)
- • Significant contingent liability from uncertain tax demands across multiple years(p.333)
- • Court-ordered reclassification of stressed loans affecting provisioning accuracy(p.355)
- • High concentration in renewable energy lending with sector dependency(p.319)
- • Dependence on external agencies for loan impairment assessment(p.339)
- • High proportion of loan portfolio requiring impairment allowances(p.375)
- • Significant proportion of unsecured loans creating credit risk(p.375)
- • Substantial contingent liabilities from tax disputes(p.401)
- • Significant deferred tax asset exposure indicating lower profitability potential(p.377)
- • High leverage with debt-to-equity ratio of 6.06(p.527)
- • Deteriorating net interest margin from 3.93% to 1.68%(p.529)
- • Significant foreign currency exposure of 24.31% of borrowings as of September 30, 2023(p.533)
- • Dependence on funding from state DISCOMs which face financial stress(p.532)
- • Concentration risk with single largest lender being SBI at 11.42% of funding(p.529)
- • High financial leverage with significant debt burden(p.572)
- • Rising finance costs due to interest rate increases(p.551)
- • Significant contingent liabilities from tax disputes(p.589)
- • Litigation on classified NPA accounts restricts provisioning flexibility(p.571)
- • Heavy concentration of NPAs in specific borrower segments(p.582)
Opportunities
- • India targets 500 GW non-fossil fuel capacity by 2030 with Net-Zero by 2070(p.49)
- • Renewable energy sector growth with government policy support(p.49)
- • Expansion into new and emerging renewable technologies(p.49)
- • Growth through consortium and co-financing arrangements(p.64)
- • Potential for geographic expansion and market penetration(p.55)
- • Increasing sector interest and financing demand from global institutions(p.68)
- • Government target of 500 GW non-fossil fuel capacity by 2030 drives lending demand(p.150)
- • Renewable energy projected to grow to 66% of total capacity by 2032(p.141)
- • Strong projected electricity demand growth of 4.5%-5.3% CAGR through 2032(p.156)
- • ₹24.43 trillion expected investment outlay in renewable capacity additions through 2032(p.141)
- • Emerging opportunities in green hydrogen and EV infrastructure with government support(p.142)
- • Power sector financing NBFCs showing strong growth momentum(p.142)
- • Massive investment requirement for renewable capacity expansion(p.165)
- • Planned annual bidding for 50 GW renewable capacity(p.165)
- • Increase in domestic solar module manufacturing capacity(p.165)
- • Offshore wind energy development potential(p.166)
- • Wind-solar hybrid projects for stable power supply(p.168)
- • Significant energy storage solutions market expansion(p.186)
- • Bioenergy and waste-to-energy expansion potential(p.176)
- • Government push towards green hydrogen production(p.180)
- • Government target of 500 GW non-fossil fuel capacity by 2030(p.235)
- • Massive untapped solar potential with only 72 GW installed vs 749 GW potential(p.235)
- • Hydro power growth expected at 6.3% CAGR from FY2023 to FY2027(p.235)
- • Green hydrogen production mission with ₹190 billion outlay targeting 5 MMT by 2030(p.236)
- • EV market opportunity with government target of 100% electric mobility for public transport by 2030(p.236)
- • Opportunity in consortium financing for large-scale utility projects(p.235)
- • Emerging technologies financing including battery storage and green hydrogen(p.236)
- • Green bond market expansion opportunity with only ₹21 billion raised so far(p.215)
- • Mandate to finance India's renewable energy transition across growing sectors(p.354)
- • Growing lending portfolio in emerging renewable sectors like electric vehicles(p.317)
- • Expanding into energy efficiency and emerging renewable technologies(p.344)
- • Diversification of funding sources across domestic and international markets(p.322)
- • Expansion of renewable energy financing mandate and market growth(p.401)
- • Growing portfolio of government-backed renewable energy projects(p.416)
- • Increasing debt capital market access demonstrated by recent bond issuances(p.389)
- • Solar power generation assets generating steady revenue(p.423)
- • Strategic role in India's renewable energy promotion initiatives(p.526)
- • Expansion into new and emerging renewable energy technologies(p.526)
- • Implementation of Central PSEU financing scheme(p.526)
- • Growth in RE sector with diversified portfolio across multiple sectors(p.526)
- • Expansion in renewable energy financing as India pursues clean energy targets(p.550)
- • Growth in solar operations providing recurring revenue(p.556)
- • Potential for Navratna status upgrade to enhance market positioning(p.593)
- • Increased government support through capital infusion(p.569)
- • Access to domestic and international capital markets(p.571)
Threats
- • Sectoral dependence on renewable energy with associated policy risks(p.49)
- • Weak DISCOM finances causing payment delays to RE generators(p.69)
- • Increasing competition from banks and NBFCs in RE financing(p.58)
- • Tariff uncertainty and regulatory changes affecting project viability(p.49)
- • REC market uncertainty impacting borrower cash flows(p.60)
- • Macroeconomic risks including inflation and currency volatility(p.74)
- • Natural disasters and climate change affecting RE projects(p.76)
- • Renewable energy tariffs declining, potentially compressing lending yields(p.152)
- • Regulatory capital adequacy requirements may constrain lending growth(p.118)
- • Peak power deficit widened significantly in FY23 indicating volatile demand(p.155)
- • Wind energy capacity additions slowed due to policy changes and site constraints(p.157)
- • Global economic slowdown may impact India's power sector financing demand(p.143)
- • Solar energy intermittency limiting round-the-clock generation(p.165)
- • High capital costs limiting wind project competitiveness(p.169)
- • Seasonal wind availability affecting capacity factors(p.170)
- • Environmental and geological challenges in hydro projects(p.173)
- • Delays in grid infrastructure limiting capacity integration(p.165)
- • Increased input costs and material price volatility(p.165)
- • Lack of offshore wind infrastructure and expertise(p.167)
- • DISCOM collection efficiency and payment defaults(p.164)
- • Stringent regulatory framework and policy changes affecting project viability(p.214)
- • Delayed project implementation and time/cost overruns impacting repayment capacity(p.215)
- • Fuel supply risks and off-take risks affecting project viability(p.215)
- • DISCOM financial stress impacting loan repayment(p.215)
- • High reliance on wholesale borrowings with over 75% from market and banks(p.214)
- • Interest rate volatility creating asset-liability mismatch(p.215)
- • Competitive pressure from established power financing NBFCs(p.264)
- • Difficulty in raising funds at competitive rates limiting financing capacity(p.214)
- • Exposure to foreign currency volatility requiring hedging(p.323)
- • COVID-19 pandemic impact on renewable energy project financing and recovery(p.356)
- • Renewable energy sector cyclicality and policy dependency(p.356)
- • Concentration of loan exposure in few customer segments(p.317)
- • Rising interest rate environment increasing cost of funds(p.400)
- • Exposure to foreign exchange volatility on multilateral borrowings(p.421)
- • Regulatory changes and compliance requirements(p.401)
- • Significant pending litigation affecting renewable energy tariff recovery(p.424)
- • Project-specific risks affecting borrower repayment capacity(p.532)
- • Volatility in interest rates impacting borrowing and lending operations(p.529)
- • Regulatory changes in NBFC sector affecting operations and capital requirements(p.530)
- • Weak financial position of state DISCOMs leading to delayed payments(p.532)
- • Foreign exchange depreciation risk on foreign currency borrowings(p.533)
- • Credit market volatility and access to funding on acceptable terms(p.529)
- • Rising interest rate environment increasing borrowing costs(p.551)
- • Foreign exchange risk on outstanding foreign currency borrowings(p.566)
- • Concentration risk in renewable energy sector borrowers(p.550)
- • Regulatory and policy changes in renewable energy sector(p.579)
- • Seasonal fluctuations in renewable energy project performance(p.569)
- • Dependence on government entities as borrowers and offtakers(p.569)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| The President of India, acting through the Ministry of New and Renewable Energy, Government of India | Promoter Selling Shareholder | 100.00% | — |
| Government of India | Promoter | — | — |
| The President of India through Secretary, Ministry of New and Renewable Energy | Promoter | 100.00% | — |
| Government of India | Promoter/Wholly owned enterprise | — | — |
| President of India acting through the Ministry of New and Renewable Energy | Promoter | 100.00% | — |
| Government of India | Promoter | 100% | 100% |
| Government of India | Promoter | — | — |
| President of India, acting through the Ministry of New and Renewable Energy, Government of India | Promoter/Promoter Selling Shareholder | 100.00% | — |
| President of India, acting through the Ministry of New and Renewable Energy, Government of India | Promoter Selling Shareholder | — | — |
Leadership
Pradip Kumar Das · Chairman and Managing Director
Dr. Bijay Kumar Mohanty · Director (Finance)
Dr. Bijay Kumar Mohanty · CFO
Ekta Madan · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
IREDA IPO FAQs
What is the lot size of IREDA IPO?
The minimum lot size of IREDA IPO is 460 shares. One lot costs ₹14,720 at the cut-off price.
What is the listing date of IREDA IPO?
IREDA IPO listed on 29 Nov 2023.