On November 29, the India Renewable Energy Development Agency (IREDA) marked an impressive market debut, opening at Rs 50, a 56.25% premium to the issue price of Rs 32. The state-run company had successfully raised Rs 2,150.21 crore through an initial public offering (IPO). The IPO, consisting of a fresh issue and an offer-for-sale, was oversubscribed 38.8 times.
IREDA, under the administrative control of the Ministry of New and Renewable Energy, operates as a Mini Ratna (Category - I) government enterprise. It provides financial products and services for renewable energy projects and related activities. The company recorded a 58% CAGR growth in net profit during FY21-23, with total revenue rising to Rs 3,481.9 crore in FY23.
In other IPO news, Tata Technologies is set for a blockbuster debut on November 30. The IPO, the first from the Tata Group in over 19 years, received substantial attention and was oversubscribed 69.4 times. Experts predict a listing premium of around 75-80%, attributing it to the strong parentage, robust financial performance, and growth potential in the engineering services industry.
With increasing spending on engineering research & development (ER&D) globally, Tata Technologies is positioned as a major beneficiary. It is currently engaged with top automotive ER&D spenders and new energy ER&D spenders. The company's track record shows a CAGR of 60% in net profit and 36% in revenue during FY21-FY23.
LIC's record of highest-ever applications was surpassed by Tata Technologies' IPO, receiving 73.58 lakh applications. The company has raised Rs 3,042.51 crore through an offer-for-sale.
Source: Various Reports
Disclaimer: This information is for informational purposes only and does not constitute financial advice or a recommendation to invest.