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Government-owned IREDA raises Rs 643 crore from anchor investors

State-run Indian Renewable Energy Development Agency (IREDA) has raised Rs 643 crore from anchor investors, a circular uploaded by the Bombay Stock Exchange on Monday night showed. The company allotted 20,10,19,726 equity shares to 58 funds at Rs 32 per share, which is the upper end of the price band.

The circular further mentioned that the anchor investors include Goldman Sachs, Integrated Core Strategies (Asia), Societe Generale, GAM Star Emerging Equity, BNP Paribas Arbitrage, Copthol Mauritius and Moon Capital Trading, PTI reported.

Other domestic mutual funds and insurance companies like HDFC Mutual Fund (MF), ICICI Prudential MF, Kotak MG, Sundaram MF, SBI Life Insurance Company, SBI General Insurance Company, Kotak Mahindra Life Insurance Company and SBI also participated in the anchor book. MF among others.

The Rs 2,150 crore initial public offering (IPO) of the government-run company opened for public bidding on November 21. The IPO opens at a price band of Rs 30 to Rs 32 per share and bidding will close on November 23. This latest issue represents the first by a public sector enterprise since the IPO of Life Insurance Corporation in May last year. The public enterprise is targeting to issue 40.31 crore new shares to raise about Rs 1,290 crore based on the upper end of the price range.

Additionally, the sole shareholder, the Government of India, will offer about 26.88 crore shares in an offer-for-sale (OFS) to raise Rs 860 crore. The funds raised from the issue will be used to meet the future capital needs of the company and to increase its capital base for further lending. About half of the issue size has been reserved for institutional buyers, about 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

IREDA is a Mini Ratna Enterprise under the Government of India and is administratively controlled by the Ministry of New and Renewable Energy. The book-running managers of the issue are BOB Capital Markets Limited, SBI Capital Markets Limited and IDBI Capital Markets & Securities Limited. The company’s shares will be listed on BSE and NSE.

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