Bengaluru
In its first trading session on Wednesday, shares of the state-owned Indian Renewable Energy Development Agency (IREDA) jumped as much as 74%, valuing the company at $1.80 billion.
The stock, which opened trading at 50 rupees, surged to a high of 55.70 rupees and has continued to trade above its 32 rupee initial public offer (IPO) price thus far in the session. The company, a non-banking lender that funds renewable energy projects like solar, hydropower, and biofuel, saw strong interest in its initial public offering (IPO) last week, and it was oversubscribed 38.8 times.
Exchange data indicates that bidders placed bids for approximately 18.3 billion shares, valued at 584.72 billion rupees. A new issue of shares worth up to 12.9 billion rupees was part of the 21.50 billion rupee initial public offering (IPO), while the government sold shares worth up to 8.6 billion rupees.
India has seen a record 196 initial public offerings (IPOs) this year, and as a result of the country’s enormous consumer base and potential for economic growth, the stock market has risen to all-time highs. The reaction to companies going public, however, has been uneven; some lackluster launches have been ascribed to unfavorable market circumstances, concerns about valuation, or anxieties regarding competition.
Based on data from LSEG, these 196 companies have raised approximately $5.97 billion, a 22.6% decrease from the same period last year. IREDA’s interest income increased by 49.1% during the half-year that ended on September 30, but its profit increased by 41.2% to 5.79 billion rupees. This week, there will be a lot of new entrants into the domestic equity market. One such company is Tata Technologies, which is owned by Tata Motors and will list for the first time in almost 20 years on Thursday.
