Indian Renewable Energy Development Agency Limited IPO
Corporate Structure and Regulatory Status: The company is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). It was designated as a “Public Financial Institution” (PFI) under Section 4A of the Companies Act, 1956, and holds Infrastructure Finance Company (IFC) status as a Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFC-ND-SI). It also holds Mini Ratna (Category I) status.
Business Focus: The core business revolves around promoting, developing, and providing financial assistance for new and renewable energy (RE) projects, as well as energy efficiency and conservation (EEC) projects. The company offers a comprehensive range of financial products and services throughout the entire value chain, from project conceptualization to post-commissioning.
Financial Products and Services: The company provides a diverse set of financial products, including long-term, medium-term, and short-term loans for RE projects, manufacturing, and equipment financing. Other fund-based products include top-up loans, bridge loans, takeover financing, and loans against securitization of future cashflows. Non-fund-based products include letters of comfort, letters of undertaking, payment on order instruments, and guarantee assistance schemes. The company also offers consulting services on techno-commercial issues related to the RE sector.
Financial Performance: The company has demonstrated strong growth and business performance. Key financial highlights include significant growth in term loans outstanding, loans sanctioned, loans disbursed, total income, and profit after tax over the years. The company has maintained healthy asset quality, as evidenced by a reduction in gross non-performing assets (NPAs) as a percentage of term loans outstanding.
Geographical Diversification: The company has a geographically diversified portfolio, with term loans outstanding across 23 states and five Union Territories in India as of June 30, 2023.
Government Initiatives and Role: The company plays a strategic role in the Government of India’s initiatives for promoting and developing the RE sector. It is directly involved in implementing various schemes launched by the MNRE, such as being the fund handling agency for the Credit Linked Capital Subsidy Scheme and the Central Nodal Agency for the National Bioenergy Programme. The company is also involved in the implementation of other schemes related to biomass, co-generation, energy from waste/residues, and solar PV modules.
Credit Ratings and Asset Base: The company enjoys high credit ratings from rating agencies, and a significant portion of its term loans outstanding is secured, with 92.42% having security cover. This indicates a strong asset base and financial stability.
Own Renewable Energy Project: In addition to its financial products and services, the company owns a 50 MW Solar Photovoltaic Project at Kasaragod Solar Park in Kerala. The project generates revenue by injecting power into the Kerala State Electricity Board grid.
Objects of the Indian Renewable Energy Development Agency Limited IPO:
Indian Renewable Energy Development Agency Limited IPO Details:
|Open Date:||Nov 21 2023|
|Close Date:||Nov 23 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||2,150.21 Cr.|
|Lot Size:||460 Shares|
|Issue Price:||₹ 30 - 32 Per Equity Share|
|Listing Date:||Dec 04 2023|
Promoters And Management:
Financials of Indian Renewable Energy Development Agency Limited IPO:
Particulars ( In Crore )
|Revenue from Operations||2,655||2,860||3,482||2,320|
|Net translation/ transaction exchange loss||70||46||24||-30|
|Impairment on financial instruments||342||180||67||-114|
|Employee benefits expenses||47||59||63||33|
|Corporate Social Responsibility Expenses||16||10||7||4|
|Depreciation & Amortisation||23||23||23||13|
Comparison With Peers:
|Peers (cr)||Loan Book||NIM||Revenue||PAT||GNPA||ROE||Book Value||P/B|