 "IPO")
Ireda gains 88% on debut
Indian Renewable Energy Development Agency’s (Ireda) market value surged 88 per cent during their stock market debut on Wednesday. Shares of the state-owned power financier ended at Rs 60, up Rs 28, or 87.5 per cent, over its issue price of Rs 32—which was almost the same as its book value per share. Ahead of the close, the stock hit its upper trading limit for the day. Shares worth Rs 3,183 crore were traded on the NSE, where it hit a low of Rs 50 and a high of Rs 60. Ireda’s maiden share sale had garnered over 38 times subscription. The Rs 2,150-crore initial public offering (IPO) comprised a fresh issue of Rs 1,290 crore and an offer for sale of Rs 860 crore by the government. At the last close, the company is valued at Rs 16,126 crore.
“Ireda operates in a niche segment of renewable energy, which is poised to grow at a rapid pace with the government's increased focus. Further, elevation of IREDA to the ‘Schedule A’ category opens the door for 'Navratna' status, which would strengthen the balance sheet further. This, along with the lowest cost of funding and stringent corporate governance, provides IREDA a competitive edge,” brokerage Motilal Oswal had said in an IPO note.
“Ireda operates in a niche segment of renewable energy, which is poised to grow at a rapid pace with the government's increased focus. Further, elevation of IREDA to the ‘Schedule A’ category opens the door for 'Navratna' status, which would strengthen the balance sheet further. This, along with the lowest cost of funding and stringent corporate governance, provides IREDA a competitive edge,” brokerage Motilal Oswal had said in an IPO note.
Tata Tech, two others to debut on thursday
Shares of Tata Technologies, FedBank Financial Services (FedFina), and Gandhar Oil Refinery will make their stock market debut on Thursday. The IPO of all three companies had closed on Friday. Flair Writing Industries, whose IPO also closed on the same day, will list a day later. As per grey market operators, Tata Tech shares could gain over 80 per cent, while that of Gandhar are pegged to gain 40 per cent on debut. Meanwhile, Flair Writing is estimated to gain 25 per cent and FedFina could post modest gains. Investors have placed bids worth over Rs 2 trillion on the four IPOs.
Gift Nifty logs new record turnover
The Gift Nifty logged its highest single-day turnover of $16.7 billion on Tuesday. Formerly called SGX Nifty, the index saw over 400,000 contracts traded. The last highest turnover of $15 billion was recorded on September 26. The trade activity on the index surged with the rally in the domestic markets. The Gift Nifty contracts also achieved the highest open interest of $13.51 billion. “Since the first day of full-scale operations, Gift Nifty has witnessed a total cumulative volume of over 7.87 million contracts with total cumulative turnover of $304.1 billion,” NSE said in a release. The full-scale operation at the Gift International Financial Services Centre (IFSC) began on July 3. Prior to the transition, these contracts were being traded on the Singapore Exchange (SGX).
