The IPO of Indian Renewable Energy Development Agency Ltd (IREDA) began accepting subscriptions on Tuesday, with the three-day subscription period set to conclude on November 23, 2023. Investors have just one day left to participate in this public offering. The latest update on the IREDA IPO subscription status reveals that the public issue has garnered a subscription of 4.56 times within the initial two days of bidding.
Simultaneously, unlisted shares of the state-owned company are witnessing increased activity in the grey market. Market observers note that IREDA Ltd’s shares are commanding a premium of ₹10 in the grey market today, marking a ₹3 increase from the previous day’s Grey Market Premium (GMP) of ₹7.
Current Grey Market Premium for IREDA IPO
Market observers report that the Grey Market Premium (GMP) for IREDA IPO today stands at ₹10, demonstrating a ₹3 uptick from the previous day’s GMP of ₹7. Despite mixed trends in both Dalal Street and the global market, the grey market sentiment towards IREDA shares has turned bullish. Observers attribute this positive shift to the strong response from investors during the first two days of the IPO bidding process. The appealing valuations of IREDA shares are identified as a key factor drawing attention in the grey market.
Nevertheless, stock market experts caution investors against placing excessive reliance on GMP, emphasizing its speculative nature as a non-regulated metric. They stress the importance of adhering to fundamental analysis by examining the company’s financials for a more accurate evaluation.
After two days of subscription, the IREDA IPO has achieved a subscription rate of 4.56 times. The retail portion is subscribed 4.26 times, the Non-Institutional Investors (NII) portion is subscribed 7.74 times, and the Qualified Institutional Buyer (QIB) portion is subscribed 2.69 times. The IPO, offered in a price band of ₹30-32, received bids for 2,14,70,52,300 shares against the offered 47,09,21,451 equity shares.
IREDA IPO: To Apply or Not?
Avinash Gorakshkar, Head of Research at Profitmart Securities, recommends subscribing to the public issue, citing its small size, attractive valuations, and strong fundamentals. He suggests considering it for both listing gains and potential long-term investment.
Rajan Shinde, Research Analyst at Mehta Equities, gives a ‘subscribe’ recommendation, highlighting IREDA Ltd’s significant growth in Assets Under Management (AUM) and robust financial performance. Shinde suggests subscribing for both listing gains and long-term investment, considering the government’s initiatives to promote the Renewable Energy sector.
The allotment date for IREDA IPO is expected on November 24, 2023, while the listing date is anticipated on November 29, 2023, the following Wednesday.