INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED

INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED- IPO DETAILS 

Company Overview 

Established in March 1987, the Indian Renewable Energy Development Agency Limited (IREDA) is a government-owned public limited company and holds the prestigious status of a Mini Ratna (Category - I) enterprise. The administrative oversight of IREDA falls under the Ministry of New and Renewable Energy (MNRE). Notably, in the fiscal year 2021-22, IREDA achieved remarkable milestones with the highest-ever loan sanctions totaling approximately Rs. 23921.06 crores and loan disbursements amounting to around Rs. 16070.82 crores. 

With over 36 years of experience, IREDA stands as a seasoned financial institution actively involved in the promotion, development, and provision of financial assistance for new and renewable energy projects, alongside initiatives focused on energy efficiency and conservation. The company boasts a comprehensive suite of financial products and services covering the entire project lifecycle, from initial conceptualization to post-commissioning, encompassing renewable energy projects and ancillary activities such as equipment manufacturing and transmission. 

Objective of the IPO 

Here are a few quick reasons why IREDA going public:  

1. Boosting the capital base is a strategic step to address future capital needs and support subsequent lending activities.  

2. The company foresees advantageous outcomes from listing its Equity Shares on the Stock Exchanges. This move is anticipated to not only elevate the brand image among current and prospective customers but also establish a public market for the Equity Shares in India. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company's close collaboration with Government of India entities and its in-depth comprehension of policies provides it with access to lucrative business opportunities. This unique positioning grants the company the capability to structure financing solutions and conduct thorough project risk assessments, establishing a competitive edge over other financing entities. 

2. Distinguished as a key player in this domain, the company leverages a digital approach to prioritize borrower-centricity and enhance operational scalability. As of September 30, 2023, it boasts Term Loans Outstanding totaling ₹47,514.48 crores across 23 States and five Union Territories. 

3. As the largest pure-play green financing Non-Banking Financial Company (NBFC) in India, the company is strategically positioned to capitalize on the rapid expansion within the renewable energy sector. 

4. Underpinned by comprehensive credit appraisal policies and procedures, the company effectively evaluates and extends financial assistance to a diverse range of renewable energy projects, encompassing both established and emerging sectors. 

Cons 

1. The company's core revenue source is derived from interest income generated by the loans it disburses. Any fluctuations in interest rates pose a potential risk, as they could negatively impact the company's hedging instruments, net interest income, and net interest margin. 

2. The business model relies heavily on timely access to borrowings and the associated costs for onward lending. Inability to secure borrowings on commercially acceptable terms and at competitive rates may significantly hamper the company's operations and financial performance. 

3. The company has experienced instances of non-compliance with covenants in past financing agreements, including those with the Asian Development Bank related to the maintenance of the Gross Non-Performing Asset (GNPA) level. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”