IREDA IPO: How to Check IPO Allotment Status and Maximizing Profits
IREDA IPO Allotment
IREDA IPO Allotment: A Comprehensive Guide to Checking Status and Maximizing Gains
The Indian Renewable Energy Development Agency (IREDA) recently concluded its Rs 2,150.21 crore Initial Public Offering (IPO), which was open for subscription from November 21 to November 23.
The overwhelming response from investors, with a subscription rate of more than 38 times, has created anticipation and excitement in the market.
As investors await the allotment status, the gray market premium (GMP) of Rs 11 from the upper price band adds to the enthusiasm, suggesting a potential profit of over 34% on listing.
However, it’s crucial to note that market experts emphasize the importance of evaluating a company’s market sentiment and business health on the listing day, rather than relying solely on signals from the gray market.
The journey from subscription closure to allotment finalization involves various steps and key dates. Here, we delve into the details of how to check the IREDA IPO allotment status and explore the intricacies of this robust IPO.
IREDA IPO Overview:
Before diving into the allotment details, let’s recap some key aspects of the IREDA IPO. The subscription window for this IPO was open from November 21 to November 23, and it witnessed an impressive response from investors.
The IPO was oversubscribed by 38.80 times, showcasing the high demand for shares. The subscription data reveals a robust participation across different investor categories:
- Qualified Institutional Buyers (QIB): 104.57 times
- Non-Institutional Investors (NII): 24.16 times
- Retail Investors: 7.73 times
- Employees: 9.80 times
The price band for the IPO was set at Rs 30-32. The government, which currently holds a 100 percent stake in IREDA, plans to sell new shares worth Rs 1,290.13 crore through the IPO.
Additionally, an Offer for Sale (OFS) window includes the sale of 26,87,76,471 shares with a face value of Rs 10.
The funds raised through the issuance of new shares will be utilized to meet the future capital requirements of the company and enhance the capital base for disbursing loans.
Key Dates in the IREDA IPO Timeline:
- Subscription Period: November 21-23
- Allotment Finalization: November 29
- Shares Listed on BSE and NSE: December 4
As we move closer to the allotment finalization on November 29, investors eagerly await the opportunity to check their allotment status. The process involves accessing the information through the BSE website or the registrar’s site.
How to Check IREDA IPO Allotment Status:
1. Check on BSE Website:
- Visit BSE’s IPO Allotment Status page.
- Select “Equity” in the Issue Type.
- Choose “IREDA” from the drop-down menu for Issue Name.
- Enter the application number or PAN.
- Complete the ‘I am not a Robot’ verification and click on the search tab.
- The allotment status of shares will start appearing on the screen.
2. Check on Registrar’s Site:
- Select “IREDA” from the dropdown menu in the company selection option.
- Choose one of the options – PAN, Application Number, DP Client ID, or Account Number/IFSC.
- If PAN is selected, fill in the PAN; if Application Number is selected, provide the Application Number; if DP Client ID is selected, input the Depository Client ID; for account number/IFSC, fill in the account number and IFSC.
- Submit the details.
- The status of your application will start appearing, providing complete details on the number of shares applied for and allotted.
Grey Market Premium (GMP) Insights:
The grey market, often considered an indicator of market sentiment, is currently reflecting a premium of Rs 11 from the upper price band of the IPO.
This implies that IPO investors may realize a profit of more than 34% upon listing. While GMP provides a snapshot of the market’s initial perception, it’s essential to approach IPO investments with a comprehensive understanding of the company’s fundamentals and long-term potential.
About IREDA:
Founded 36 years ago, the Indian Renewable Energy Development Agency (IREDA) is a significant player in the financial sector, specializing in supporting renewable energy and energy efficiency projects.
Its role encompasses financial services from project planning to post-commissioning, including equipment manufacturing and transmission.
As of September 2023, its Capital to Risk-Weighted Asset Ratio (CRAR) stands at an impressive 20.92 percent.
Financial Health and Performance:
Analyzing the financial health of IREDA provides valuable insights into the company’s stability and growth potential. In the first half of the current financial year 2023-24, IREDA demonstrated notable financial performance:
- Total Income: Increased from Rs 1577.75 crore to Rs 2320.46 crore YoY.
- Net Profit: Rose from Rs 410.27 crore to Rs 579.32 crore.
- Gross NPA: Reduced from 5.06 percent to 3.13 percent.
- Net NPA: Decreased from 2.72 percent to 1.65 percent.
- Provision Coverage Ratio: Stands at a commendable 48.11 percent.
These financial indicators highlight IREDA’s effective management and its ability to navigate the evolving landscape of renewable energy financing.
The increase in total income and net profit coupled with a reduction in NPAs signifies a positive trajectory for the company.
Future Prospects and Utilization of Funds:
The funds raised through the IPO, specifically the issuance of new shares, are earmarked for meeting the future capital requirements of IREDA.
Additionally, the capital infusion will play a crucial role in expanding the company’s capacity to disburse loans.
As of the latest available data, IREDA’s CRAR of 20.92 percent indicates a strong capital position, essential for sustaining its role as a key player in financing renewable energy initiatives.
Final Remarks:
As investors eagerly await the allotment status of the IREDA IPO, the journey from subscription to listing represents a critical phase.
The robust response from investors, coupled with positive indicators from the gray market, sets the stage for an exciting listing day.
However, it’s essential for investors to remain vigilant and consider a holistic view that encompasses the company’s fundamentals, financial health, and long-term prospects.
The renewable energy sector’s growth and IREDA’s pivotal role in financing sustainable projects position the IPO as an attractive investment opportunity.
The IPO’s oversubscription reflects investor confidence in the company’s mission and its potential to contribute significantly to India’s renewable energy landscape.
In conclusion, for investors, staying informed about the allotment process and understanding the intricacies of checking the IREDA IPO Allotment Status is paramount.
This comprehensive guide aims to provide clarity on the steps involved and shed light on the various aspects surrounding one of the most anticipated IPOs in the renewable energy sector.
As the allotment status is finalized and shares get listed on BSE and NSE, investors can make informed decisions based on a thorough understanding of the company’s fundamentals and market dynamics.
