About the Company:
Indian Renewable Energy Development Agency Ltd is a wholly owned Government of India (“GoI”) enterprise under the administrative control of the Ministry of New and Renewable Energy (the “MNRE”).
Company is a financial institution with over 36 years of experience in the business of promoting, developing and extending financial assistance for new and renewable energy (“RE”) projects, and energy efficiency and conservation (“EEC”) projects.
Company provides a comprehensive range of financial products and related services, from project conceptualisation to post-commissioning, for RE projects and other value chain activities, such as equipment manufacturing and transmission.
As of September 30, 2023, company had a diversified portfolio of Term Loans Outstanding, amounting to Rs.47,514.4 crores.
Company disbursed Loans amounting to Rs. 8828.3 crores, Rs. 16070 crores, Rs. 21639 cr, Rs. 4006 cr and Rs.6273 cr in Fiscal 2021, 2022, 2023 and the six months ended September 30, 2022 and September 30, 2023, respectively.
Company has financed projects across multiple RE (Renewable Energy) sectors such as solar power, wind power, hydro power, transmission, biomass including bagasse and industrial co-generation, waste-to-energy, ethanol, compressed biogas, hybrid RE, EEC and green-mobility.
Company also offer financial products and schemes for new and emerging RE technologies such as, biofuel, green hydrogen and its derivatives, battery energy storage systems, fuel cells, and hybrid RE projects.
Company offers Loans to the following Sectors:
- Hydro Power.
- Biomass Power and Co-generation.
- Wind Power.
- Solar Energy.
- Hybrid Wind and Solar.
- Waste-to-energy.
- Ethanol.
- Biomass Projects.
Company’s 50 MW Solar Photovoltaic Project.
As part of diversification strategy, company has setup a 50 MW Solar Photovoltaic project in Kasaragod Solar Park in the State of Kerala. The project is 100% owned by our Company and generates power which is injected into the grid of Kerala State Electricity Board. The project was commissioned in September 2017.
Company’s Key financial and operational parameters:
Management Team:
- Mr. Pradip Kumar Das (Designation: Chairman and Managing Director)
- Dr. Bijay Kumar Mohanty (Designation: Director (Finance)
Competition in the Business:
Company’s competitors include Power Finance Corporation Ltd, REC Limited, India Infradebt Ltd, Tata Cleantech Capital Ltd and PTC India Financial Services Ltd.
Objectives of the Issue:
Offer for Sale (OFS): (Rs.860 cr)
- Company will not receive any proceeds from the Offer for Sale. Further, the proceeds of the Offer for Sale shall be received by the Promoter Selling Shareholder and will not form part of the Net Proceeds.
Fresh Issue: (Rs. 1290 cr)
- Company proposes to utilise the Net Proceeds from the Fresh Issue towards augmenting our capital base to meet future capital requirements and onward lending.
Positives for the Company:
Established and trusted brand name operating in a rapidly expanding sector.
- With the announcement of 500 GW non-fossil fuel based capacity installation by 2030 and net-zero emissions by 2070, India has set itself on one of the most accelerated energy transition trajectories in the world.
- Company’s position as the largest pure-play green financing NBFC in India places us among select players who are well placed to capitalise on the rapid growth in the RE sector.
Maintain our leadership in RE sectors such as solar, wind, hydro power and biomass, biofuels and co-generation.
- The financing requirement for RE sectors such as solar and wind are set to expand prominently in line with the GoI target of 500 GW installed non-fossil fuel based power capacity by 2030. Compared to the solar potential of 749 GW, India had an installed capacity of only 72 GW as on September 2023.
- Hydro power capacity is expected to grow at a CAGR of 6.3% from Fiscal 2023 to Fiscal 2027, reaching 59.8 GW and in Fiscal 2032, the installed capacity is expected to reach 88.8 GW.
- Company intend to play a critical role in meeting this financing requirement and enhance the market share in these areas.
Qualitative factors
- Track record of growth, geared towards high quality assets, diversified asset book and stable profitability.
- Strategic role in Government of India initiatives in the Renewable Energy sector.
- Established and trusted brand name operating in a rapidly expanding sector.
- Digitized process for borrower centricity and operational scalability, with presence across India.
- Comprehensive data-based credit appraisal process and risk-based pricing, with efficient post-disbursement project monitoring and recovery processes.
- Access to diversified and cost-effective long-term sources of borrowing with a judicious approach towards asset-liability management.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 2657.74 | 2874.15 | 3483.04 | 2320.45 |
| Net Profit | 346.3 | 633.5 | 864.6 | 579.3 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| IREDA Ltd | 10 | 3.78 | 8.46 | 15.43% | 25.98 |
| REC Ltd | 10 | 42.28 | 7.71 | 20.41% | 220.72 |
| Power Finance Corporation Ltd | 10 | 60.19 | 4.79 | 20.34% | 424.16 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 21st November 2023 |
| Issue Closes on | 23rd November 2023 |
| Issue Price | Rs.30 – 32 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 460 Shares |
| Minimum Investment | Rs.14,720 |
| Issue Constitutes | 25% |
| Issue Size | Rs.2150 cr ($259 million) |
| Market Cap | Rs.8600 cr ($1.03 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 40,31,64,706 |
| Equity Shares Offered (OFS) | 26,87,76,471 |
| Total Equity Shares Offered (Fresh + OFS) | 67,19,41,177 |
| Equity Shares Prior to the Issue | 228,46,00,000 |
| Equity Shares after the Issue | 268,77,64,706 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 29th November 2023 |
| Initiation of Refunds | on or Before 30th November 2023 |
| Credit of Equity Shares: | on or Before 1st December 2023 |
| Listing Date: | on or Before 4th December 2023 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.78 | 8.46 | 15.43% | 25.98 |
| Company Contact Info: |
|---|
| IREDA Ltd India Habitat Centre, East Court Core 4A, 1st Floor, Lodhi Road New Delhi – 110 003, India. Telephone: +91 11 2468 2206 / 2468 2219 E-mail: equityinvestor2023@ireda.in Website: www.ireda.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai 400 083, Maharashtra, India Telephone: +91 81 0811 4949 E-mail: indianrenergy@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPOAllotmentcheck/ |
