November 21, 2023
admin
Ireda IPO Guidance: Chanakya places before you view and Guidance by different experts.
👉View on IREDA IPO by Rajan Shinde, Research Analyst, Mehta Equities Ltd
“We believe IREDA IPO gives an investor an opportunity to invest in Mini Ratna CPSE which is the largest pure play in green financing Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFC-ND-SI). We think as India’s ambitious renewable energy goals and IREDA’s position as the largest green financing NBFC, the company stands as a trusted brand in a rapidly expanding sector. We also believe IREDA plays a pivotal role in shaping and implementing policies for the renewable energy sector, aligning with the Government of India’s objectives. With the digitized process for efficiency, IREDA would ensure its physical presence across key locations in India and a comprehensive data-based credit appraisal process with risk-based pricing contribute to efficient post-disbursement project monitoring and recovery. We also think IREDA maintains a competitive average cost of borrowing, benefiting from its classification as a Public Finance Institution with high credit ratings and access to diverse funding options would provide cost-effective access to long-term capital.
By looking at the financials, the company has shown a substantial growth in AUM of IREDA 41% YoY at end Sept 2023, and strong growth of 22%/39% with Net profit growth of 83%/36% in Fiscal 2022 and 2023. On valuation per se at upper price band of Rs.32/-, the issue is asking for a Market Cap of Rs. 8601 crore. Based on annualized FY24 earnings and fully diluted post- IPO paid-up capital, the company is asking for a P/B multiple of 1.02x which seems to be fully priced compared to its peers. Being the government has set a substantial target for RE installation by 2030 to meet the net zero emission target and a front runner in renewable energy financing, we recommend investors to “Subscribe for listing gain” the IREDA IPO as well as Long term considering GOI initiatives to promote Renewable Energy sector.”
>>Go to Mainboard IPOs Section: Click
>>Get Good Staff or Job, Click: Staffavailable.com
>>Interested in Used Automobiles or vintage cars? Click: BigGaddi.com
>>Get solid Guidance on Mutual fund Investments, Click: ChanakyaMFGuidance.com
>>Study Stock Research Reports, Click: AnalysisLibrary.com
>>Interested in Crossword Puzzles? Click: Magajmari.com
