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- Indian Renewable Energy Development Agency Ltd
Indian Renewable Energy Development Agency Ltd
Indian Renewable Energy Development Agency Limited (IREDA) was incorporated on March 11, 1987 as a public limited company and has obtained certificate of commencement of business dated March 21, 1987. The Company was notified as a public financial institution on October 17, 1995, by the Department of Company Affairs, Ministry of Finance, GoI. Further, the Reserve Bank of India granted a certificate of registration to the Company on January 23, 2008, permitting to carry on the business of Non-Banking Financial Company without accepting public deposits.
IREDA is a domestic financial institution with more than 30 years of experience in the Indian renewable energy sector. The Company provides financial assistance to renewable energy projects, companies and manufacturers in India for power generation, equipment supply and fuel source projects including wind power, solar power, hydro power, biomass, co-generation and waste to energy as well as energy efficiency and conservation. The Company provides comprehensive suite of financial products and services includes various fund-based financial products including long-term and short-term project and manufacturing loans, take out financing, bridge loans and bill discounting, and non-fund based assistance, like performance guarantees, letters of comfort, letters of undertaking and refinancing schemes.
IREDA is currently a 100% Government of India ('GoI') owned enterprise under the administrative control of the Ministry of New and Renewable Energy (the 'MNRE). The Company is a 'Public Financial Institution' (a 'PFI') under section 2(72) of the Companies Act, 2013 and is registered as a non-banking financial company (a 'NBFC') with the Reserve Bank of India (the 'RBI'). The Company believes that its classification as a PFI enhances its ability to raise funds on a cost-competitive basis (including through the issuance of various types of bonds that offer certain tax benefits to the bondholders). The company also was conferred with the Mini Ratna (Category 1) status in June 2015 by the Department of Public Enterprises.
The Company was established as an integral part of, and have played a strategic role in, the GoI's initiatives for the promotion and development of the renewable energy sector in India. It has been involved in the development and implementation of various policies and structural and procedural reforms in the renewable energy sector. Under the IREDA-NCEF Refinancing Scheme, the company utilizes funds received from the National Clean Energy Fund ('NCEF') to refinance renewable energy projects for bio-mass (up to 10MW) and small hydro (up to 5MW). We have also been involved in various GoI programs for the development of renewable energy sector including the Wind GBI Scheme, the Solar GBI Scheme and the Solar Water Heating System Capital Subsidy Scheme.
The Company's primary sources of funds include domestic and foreign borrowings, internal resources and Government of India guarantees and support. In September 2017, the company issued Rs. 19,500 million of green rupee-denominated bonds in the international markets (with proceeds received on October 10, 2017). In March 2017, the company issued Rs. 7,000 million of green energy bonds in the domestic market. Both issues were in accordance with its Green Bond Framework which meets requirements of the Climate Bonds Standard Version 2.0 issued by the Climate Bond Initiative (Green Bonds) and also adheres to the Green Bond Principles, 2015, issued by the International Capital Markets Association (ICMA). The international funding sources also includes loans from the World Bank, the Asian Development Bank, Kreditanstant fur Wiederaufbau, Japan International Cooperation Agency European Investment Bank, Agence Francaise Development and Nordic Investment Bank.
In addition to the financial products and services, the company has also set up its own 50 MW Solar Photovoltaic Project in 200 MW Kasaragod Solar Park in the state of Kerala, on which it has spent Rs. 2,939.85 million through September 30, 2017. The project was commissioned in September 2017 and has begun generating power which is being injected into the Kerala State Electricity Board grid. The project began generating revenue in September 2017.
IREDA is a domestic financial institution with more than 30 years of experience in the Indian renewable energy sector. The Company provides financial assistance to renewable energy projects, companies and manufacturers in India for power generation, equipment supply and fuel source projects including wind power, solar power, hydro power, biomass, co-generation and waste to energy as well as energy efficiency and conservation. The Company provides comprehensive suite of financial products and services includes various fund-based financial products including long-term and short-term project and manufacturing loans, take out financing, bridge loans and bill discounting, and non-fund based assistance, like performance guarantees, letters of comfort, letters of undertaking and refinancing schemes.
IREDA is currently a 100% Government of India ('GoI') owned enterprise under the administrative control of the Ministry of New and Renewable Energy (the 'MNRE). The Company is a 'Public Financial Institution' (a 'PFI') under section 2(72) of the Companies Act, 2013 and is registered as a non-banking financial company (a 'NBFC') with the Reserve Bank of India (the 'RBI'). The Company believes that its classification as a PFI enhances its ability to raise funds on a cost-competitive basis (including through the issuance of various types of bonds that offer certain tax benefits to the bondholders). The company also was conferred with the Mini Ratna (Category 1) status in June 2015 by the Department of Public Enterprises.
The Company was established as an integral part of, and have played a strategic role in, the GoI's initiatives for the promotion and development of the renewable energy sector in India. It has been involved in the development and implementation of various policies and structural and procedural reforms in the renewable energy sector. Under the IREDA-NCEF Refinancing Scheme, the company utilizes funds received from the National Clean Energy Fund ('NCEF') to refinance renewable energy projects for bio-mass (up to 10MW) and small hydro (up to 5MW). We have also been involved in various GoI programs for the development of renewable energy sector including the Wind GBI Scheme, the Solar GBI Scheme and the Solar Water Heating System Capital Subsidy Scheme.
The Company's primary sources of funds include domestic and foreign borrowings, internal resources and Government of India guarantees and support. In September 2017, the company issued Rs. 19,500 million of green rupee-denominated bonds in the international markets (with proceeds received on October 10, 2017). In March 2017, the company issued Rs. 7,000 million of green energy bonds in the domestic market. Both issues were in accordance with its Green Bond Framework which meets requirements of the Climate Bonds Standard Version 2.0 issued by the Climate Bond Initiative (Green Bonds) and also adheres to the Green Bond Principles, 2015, issued by the International Capital Markets Association (ICMA). The international funding sources also includes loans from the World Bank, the Asian Development Bank, Kreditanstant fur Wiederaufbau, Japan International Cooperation Agency European Investment Bank, Agence Francaise Development and Nordic Investment Bank.
In addition to the financial products and services, the company has also set up its own 50 MW Solar Photovoltaic Project in 200 MW Kasaragod Solar Park in the state of Kerala, on which it has spent Rs. 2,939.85 million through September 30, 2017. The project was commissioned in September 2017 and has begun generating power which is being injected into the Kerala State Electricity Board grid. The project began generating revenue in September 2017.
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Indian Renewable Energy Development Agency Ltd IPO Timeline
Indian Renewable Energy Development Agency Ltd IPO opens on 21-Nov-2023, and closes on 23-Nov-2023. The Indian Renewable Energy Development Agency Ltd IPO bid date is from 21-Nov-2023 to 23-Nov-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Indian Renewable Energy Development Agency Ltd IPO Opening Date | 21-Nov-2023 |
| Indian Renewable Energy Development Agency Ltd IPO Closing Date | 23-Nov-2023 |
| Basis of Allotment | 28-Nov-2023 |
| Initiation of Refunds | 28-Nov-2023 |
| Credit of Shares to Demat | 29-Nov-2023 |
| Indian Renewable Energy Development Agency Ltd IPO Listing Date | 29-Nov-2023 |
Indian Renewable Energy Development Agency Ltd IPO Lot Size
Indian Renewable Energy Development Agency Ltd IPO lot size is 460 shares. A retail-individual investor can apply for up to 13 lots (5980 shares or 191360).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 460 | ₹14720 |
| Maximum | 13 | 5980 | ₹191360 |
Indian Renewable Energy Development Agency Ltd IPO Details
| Indian Renewable Energy Development Agency Ltd IPO Date | 21-Nov-2023 to 23-Nov-2023 |
| Indian Renewable Energy Development Agency Ltd IPO Face Value | Shares of ₹10 per share |
| Indian Renewable Energy Development Agency Ltd IPO Price | ₹30 to ₹32 per share |
| Indian Renewable Energy Development Agency Ltd IPO Lot Size | 460 |
| Issue Size | Shares of ₹10 (aggregating up to ₹2150.21 Cr) |
| Fresh Issue | Shares of ₹10 (aggregating up to ₹1290.13 Cr) |
| Offer for Sale | Shares of ₹10 (aggregating up to ₹860.08 Cr) |
| Issue Type | Book Built Portion |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 134013152 |
| Retail Shares Offered | Not less than 234523015 |
| NII (HNI) Shares Offered | Not less than 100509864 |
| Company Promoters | The President of India. |
Objects of the Issue
The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- 1 Listing of the Equity Shares on the Stock Exchanges
Company Financials
Indian Renewable Energy Development Agency Ltd Financial Information (Restated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| Amount in ₹ Crore | |||
- 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.
- Experienced senior management with in-depth sector expertise and professionally qualified employee base.
- Its business and financial performance could suffer if the company is unable to effectively manage the quality of its growing asset portfolio and control the level of the company non-performing assets ("NPAs").
- Volatility in interest rates could adversely affect its business, net interest income and net interest margin, which in turn would adversely affect the company's business, results of operations and financial condition.
- Its may be unable to secure borrowings on commercially acceptable terms and at competitive rates, which could adversely affect its business, results of operations and financial condition.
- Projects and schemes for generating electricity and energy through renewable sources like solar, wind, hydro, biomass, waste-to-energy and new and emerging technologies have inherent risks and, to the extent they materialize, could adversely affect its business, results of operations and financial condition.
- The COVID-19 has had, and a similar pandemic could have, certain adverse effects on its business, operations, cash flows and financial condition.
- The company credit ratings have been downgraded in the past. Any future downgrade in its credit ratings could adversely affect the company business, results of operations and financial condition.
- The company operates in a highly competitive environment and increased competition in lending to the RE sector, including to new and emerging technologies, could have a material adverse effect on its business, results of operations and financial condition.
- The company level of indebtedness and the restrictive covenants in its borrowing agreements that the company have with its lenders could adversely affect its ability to react to changes in the company's business environment, limit its flexibility in managing its business and maintaining the growth of the company loan portfolio, which may in turn have a material adverse effect on its business, results of operations and financial condition.
- Its business is entirely concentrated in, and dependent on, the Indian RE sector, which in general has many challenges and effective addressing of these risks are key to the growth of the sector. If risks in the sector are not managed effectively, the sector growth will suffer, and its business and operations will in turn will also be adversely affected.
- The RBI prudential norms are applicable to it and if the level of non-performing assets in the company loan portfolio were to increase, owing to changes to NPA classification norms or otherwise, its business, results of operations and financial condition would be adversely affected.
- The poor health of State DISCOMs may lead to delays in payments to RE projects that its finance. This poses a risk which may adversely affect the repayment capability of the company borrowers.
- Certain DISCOMs that purchase electricity from its borrowers and certain states have sought revision in the terms of their existing PPAs. A downward revision in the tariffs could negatively affect the cash flows and financial conditions of its borrowers and may affect their repayment capabilities.
- There are outstanding litigations involving the Company and any adverse outcome in any of these litigations may have an adverse impact on its business, results of operations and financial condition.
- The company is exposed to fluctuations in foreign exchange rates, which in turn could adversely affect its results of operation and financial condition.
- If the company is unable to manage its growth effectively, its business, results of operations and financial condition could be adversely affected.
- The company is subject to requirements, including capital adequacy requirements, imposed by the RBI. Any failure to meet these requirements or any change by the RBI in the regulatory regime for Government NBFCs, may adversely affect its business, results of operations and financial condition.
- Any increase in contingent liabilities could have a material adverse effect on its business, results of operations and financial condition.
- Certain of its historical corporate records in connection with the allotment of the company Equity Shares are not traceable. Its cannot assure you that there will not be any imposition of penalty in the future in relation to these matters, which may impact its financial condition and reputation.
- The Company and its borrowers are required to comply with GoI policies. The company may fail to obtain certain regulatory approvals in the ordinary course of its business in a timely manner or at all, or to comply with the terms and conditions of its existing regulatory approvals and licenses. In addition, the company business is subject to periodic inspections by the RBI, and its non-compliance with observations made by the RBI during these inspections, or significant lapses identified by the RBI in course of inspections, could expose it to penalties and restrictions.
- The company operates a 50 MW solar project in Kerala which may be subject to tariff changes by Kerala State Electricity Regulatory Commission ("KSERC"), which, among other factors, may adversely affect the viability of the project.
- The company have concentration of loans in certain states. Any economic downturn in those states, natural disasters affecting those states or change in regulations in those states affecting its RE borrowers could lead to increase in defaults by borrowers in those states.
- The company have a concentration of loans to certain customers, and if the financial conditions of these customers deteriorate, its asset quality, financial condition and results of operations could be materially and adversely affected.
- Its may face asset-liability mismatches that could adversely affect the company cash flows, financial condition and results of operations.
- The company borrowers that relied upon Renewable Energy Certificates ("RECs") as part of their project cash flow and financial models may experience financial and cash flow issues as the market for RECs has not been realized as originally expected.
- If the company fail to identify, monitor and manage risks and effectively implement its risk management policies, it could have a material adverse effect on the company business, financial condition and results of operations.
- The success of its business depends on the company ability to attract and retain its senior management and highquality employees, and the loss of their services could have a material adverse effect on its business, results of operations and financial condition.
- If the company borrowers default on their obligations to it, the company may be unable to recall their loans on a timely basis, or at all, or realize the expected value of its collateral and this may have a material adverse effect on its results of operations and financial condition.
- The company offer innovative financing schemes to adapt to evolving business needs, some of which requires it to relies on projections regarding prospective income. There can be no assurance that the company will be able to recover amounts due to it under such arrangements if its borrowers are unable to generate adequate revenues.
- The escrow account mechanism and the trust and retention account arrangements implemented by it as a quasi-security mechanism in connection with payment obligations of its borrowers may not be effective, which could adversely affect the company results of operations and financial condition.
- The company have granted loans to private sector borrowers on a non-recourse or limited recourse basis, which increases the risk of non-recovery and may adversely affect its financial condition.
- The company borrower's insurance of assets may not be adequate to protect them against all potential losses to which they may be subject to, which could affect its ability to recover the loan amounts due to it.
- sanctioned loan may not be disbursed in full, but if its called upon to disburse more of the company sanctioned loans in a given period than its had projected, its may have to borrow more funds under cash credit/overdraft facilities, which may subject it to a higher interest rate expense than the company long-term sources of funding.
- The company has had negative cash flows from operations in recent periods. There is no assurance that such negative cash flows from operations shall not recur in the future.
- The company is required to comply with SEBI regulations and other statutory requirements in respect of its public and privately placed debt securities, which are listed on the Stock Exchanges.
- The Company may not be in compliance with certain provisions of the SEBI Listing Regulations.
- Any non-compliance under the Companies Act, 2013 may subject it to regulatory actions and penalties and the company business, financial condition and reputation may be adversely affected.
- As a financial institution focused on financing of RE and energy efficiency, its have received certain grants and tax benefits and its borrowers may have received certain tax benefits, subsidies and incentives in the past. The company cannot assure you that such grants, benefits, subsidies and incentives will be available to it and/or its borrowers in the future, which may have an adverse effect on its business, profits, results of operations and financial condition.
- Certain properties used by the Company for the purposes of its operations are leased by the Company. These title deeds are not in the Company's name. Any termination of the contractual agreements in connection with such properties or its failure to renew the same could adversely affect its business, results of operations and financial condition.
- Its may not be able to detect money-laundering and other illegal or improper activities fully or on a timely basis.
- Weaknesses, disruptions, failures or cybersecurity events in its IT systems could adversely impact the company business.
- Its business may be subject to negative publicity, which could have a material adverse effect on its business, results of operations and financial condition.
- The company may be unable to adequately protect its intellectual property and may be subject to risks of infringement claims.
- If the company were to incur a serious uninsured loss or a loss that significantly exceeds the limits of its insurance policies, it could have a material adverse effect on its business, results of operations and financial condition.
- The company may face labour disruptions and employee misconduct that could adversely affect its business, results of operations and financial condition.
- The company Statutory Auditor has included observations and certain emphasis of matters in the audit reports on the audited consolidated financial statements of the Company as at and for the year ended March 31, 2021 and on the audited standalone financial statements of the Company as at and for the years ended March 31, 2022 and 2023 and for the three months ended June 30, 2023. Further, they have included certain remarks in connection with the Companies (Auditor's Report) Order, 2020/ Companies (Auditor's Report) Order, 2016.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Significant differences exist between Ind-AS and other accounting principles, such as U.S. GAAP and IFRS, which may be material to the financial statements prepared and presented in accordance with Ind-AS contained in this Draft Red Herring Prospectus.
- The Company will continue to be controlled by the Promoter following this Offer.
- The interests of the Promoter as its controlling shareholder may conflict with the interests of other shareholders.
- Its ability to pay dividends in the future will depends on number of factors, including its profit after tax for the fiscal year, the company capital requirements, its financial condition, the company cash flows and applicable taxes and the payments will be subject to the CPSE Capital Restructuring Guidelines.
- Industry information included in this Draft Red Herring Prospectus has been derived from an industry report prepared CARE Advisory Research & Training Limited exclusively commissioned by it in connection with the Offer and paid for by the BRLMs for such purpose.
- The company have in the past entered into related party transactions and may need to or continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Deployment of the Net Proceeds is entirely at its discretion and the Net Proceeds might not be applied in ways that increase the value of your investment. Further, it is not subject to any monitoring by any independent agency.
- Its funding requirements and the proposed deployment of Net Proceeds are not appraised by any independent agency.
- The Company has granted loans to its Directors, KMPs and Senior Management Personnel and there can be no assurance that the company will be able to recover such loans in a timely manner, or at all.
- The company will not receive any proceeds from the Offer for Sale. Its Promoter will receive the net proceeds from the Offer for Sale.
- The company have in this Draft Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the Indian financial services industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The Offer Price, market capitalization to revenue from operations multiple, price to revenue from operations ratio and price to earnings ratio based on the Offer Price of the Company, may not be indicative of the market price of the Equity Shares on listing.
- Maintain its leadership in RE sectors such as solar, wind, hydro power and biomass, biofuels and cogeneration.
- Leverage its industry expertise to enhance its presence in new and emerging green technologies.
- Optimize borrowing costs to enhance competitiveness and profitability.
- Streamline operating model to continue to support non-linear growth.
- Continue to focus on the Environmental and Social Management System.
Indian Renewable Energy Development Agency Ltd IPO Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 75% |
Indian Renewable Energy Development Agency Ltd IPO Subscription Status (Bidding Detail)
The Indian Renewable Energy Development Agency Ltd IPO is subscribed 38.8 times on Nov 23, 2023 05:00:00 PM. The public issue subscribed 7.73 times in the retail category, 104.57 times in the QIB category, and 24.16 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | QIB | NII | Retail | Employee | Total |
|---|---|---|---|---|---|
| Subscription (times) | 104.57 | 24.16 | 7.73 | 9.8 | 38.8 |
Indian Renewable Energy Development Agency Ltd IPO Prospectus
Indian Renewable Energy Development Agency Ltd IPO Listing Date
| Listing Date | 29 Nov 23 |
| BSE Script | 544026 |
| NSE Symbol | IREDA |
| Listing In | BSE, NSE |
| ISIN | INE202E01016 |
| IPO Price | ₹32 |
| Face Value | ₹10 |
Indian Renewable Energy Development Agency Ltd IPO Registrar
Link Intime India Pvt Ltd
Phone: +91 81 0811 4949
Email: indianrenergy@linkintime.co.in
Website: www.linkintime.co.in
Indian Renewable Energy Development Agency Ltd IPO Lead Manager(s)
- IDBI Capital Markets & Securities Ltd
- BOB Capital Markets Ltd
- SBI Capital Markets Ltd
FAQs on Indian Renewable Energy Development Agency Ltd IPO
Indian Renewable Energy Development Agency Ltd IPO, which opens for subscription from 21-Nov-2023 to 23-Nov-2023 has an issue size of ₹2150.21 crore. The issue type is book building issue.
In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Indian Renewable Energy Development Agency Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.
Indian Renewable Energy Development Agency Ltd IPO Opens for subscription from 21-Nov-2023 to 23-Nov-2023.
The lot size of Indian Renewable Energy Development Agency Ltd is 460 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14720 and ₹191360 respectively.
Allotment date for Indian Renewable Energy Development Agency Ltd is 28-Nov-2023 and refund of application amount (in case allotment is not received) will begin from 28-Nov-2023. If your allotment goes through, then shares will be credited in your Demat account by 29-Nov-2023.
The registrar for Indian Renewable Energy Development Agency Ltd IPO is Link Intime India Pvt Ltd. You can check your IPO allotment status on the registrar's website.
The shares of Indian Renewable Energy Development Agency Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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