IREDA bonds sell like hotcakes: 52% subscribed within 40 mins

The Rs 1,000 crore tax-free bond issue of Indian Renewable Energy Development Agency (IREDA), the first issue of Calendar 2016, sold like hot cakes as soon as it opened for subscription on Friday morning.

Data available on the BSE website showed that the issue has received bids for 52.33 lakh bonds, or nearly 52 per cent of the 1 crore paper up for sale, within the first 40 minutes of listing.

The breakup of the bids was not available at the time of writing this report. The bond offers between 7.28 per cent and 7.68 per cent for tenures ranging from 10 to 20 years compared with 7.60 per cent offered on the NHPC issue last month.

There is a 20 per cent quota limit for qualified institutional buyers (QIBs), corporate and individuals and HUFs subscribing to bonds worth over Rs 10 lakh. These investors come under Categories I, II and III, respectively.

The rest 40 per cent of the issue will be offered to retail investors, who include individuals and HUFs bidding for bonds worth up to Rs 10 lakh. This set of investors comes under Category IV.

While the Mini-Ratna company is looking to raise Rs 1,000 crore from the issue, it may consider retaining oversubscription of up to Rs 716 crore, aggregating to Rs 1,716 crore, the company said.

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