Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

IREDA sets IPO price range, aims to support India's renewable energy growth

Published Nov 18, 2023 09:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
IIAN
+4.99%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

NEW DELHI - The Indian Renewable Energy Development Agency (IREDA), led by Pradip Kumar Das, has announced its upcoming initial public offering (IPO), which is scheduled from November 21-23. The price range for the shares has been set between Rs 30 and Rs 32. This marks the second Central Government entity to go public following the Life Insurance Corporation of India's (LIC) offering last year.

IREDA, recognized as a Mini-Ratna Category-I Public Sector Undertaking (PSU) and a Non-Banking Financial Company-Not Deposit Taking-Systemically Important (NBFCND-SI) that also doubles as an Infrastructure Finance Company (IFC), has been instrumental in financing renewable energy projects across India for nearly three decades. With a current market share of approximately one-third, IREDA has ambitious plans to expand India's installed capacity from its current level of around two-fifths to half-a-terawatt by the end of this decade.

The broader renewable energy sector in India is looking to attract investments totaling three trillion INR, with NBFCs like IREDA expected to supply four-tenths of this amount. As of September this year, IREDA's financial health appeared robust with term loans amassing nearly fifty thousand crores INR. The company's financial growth is evident in its net interest income, which exceeded thirteen hundred crores INR, and net profits that topped eight hundred crores INR for the fiscal year 2023. Additionally, IREDA boasts a strong capital adequacy ratio standing over eighteen percent for FY23.

For the semester ending in September, IREDA reported net interest earnings close to eight hundred crores INR and post-tax profits nearing six hundred crores INR. During this period, it also approved loans amounting to nearly five thousand crores INR. The company's financial position was further bolstered by a significant capital injection of fifteen hundred crores INR from the government in March and benefits from dividend exemptions, all while complying with the Reserve Bank of India’s regulatory framework.

IREDA's IPO comes at a time when India is undergoing a transformative shift in its energy sector, moving traditional renewable sources into mainstream ones and playing a significant role in supporting other developing countries through initiatives like the International Solar Alliance. The agency's efforts are pivotal in achieving India's ambitious renewable energy targets and contributing to global sustainable development goals.

InvestingPro Insights

In the light of the forthcoming initial public offering (IPO) of the Indian Renewable Energy Development Agency (IREDA), InvestingPro provides some key insights that potential investors may find valuable.

According to InvestingPro data, companies like IREDA that have a high return on invested capital and operate with a high return on assets often yield significant returns for their investors. This aligns with IREDA's robust financial health, as evidenced by its strong capital adequacy ratio and net profits for the fiscal year 2023.

InvestingPro Tips also suggests that companies that have raised their dividends for consecutive years are often reliable investments. IREDA's financial growth, which is evident in its net interest income and the significant capital injection it received from the government, suggests a potential for consistent dividends in the future.

As an added bonus, InvestingPro subscription is now available at an exclusive Black Friday sale, with discounts of up to 55%. Subscribers gain access to a wealth of additional tips, with ten more tips available for companies like IREDA. This valuable information can provide investors with the edge they need to make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

IREDA sets IPO price range, aims to support India's renewable energy growth
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email