IREDA IPO

1.    The company has a track record of growth, geared towards high-quality assets and diversified asset book and stable profitability.
2.    It plays a strategic role in the Government of India's initiatives in the Renewable Energy sector.
3.    It is an established and trusted brand name operating in a rapidly expanding sector.
4.    The company also works on the basis of a robust IT infrastructure with an Enterprise Resource Planning System (“ERP System”).
5.    It follows a comprehensive data-based credit appraisal process and risk-based pricing, with efficient post-disbursement project monitoring and recovery processes.
6.    Access to diversified and cost-effective long-term sources of borrowing with a judicious approach towards asset-liability management.
7.    The management team and board are quite experienced.
 

1.    Volatility in interest rates could adversely affect the business.
2.    The business is subject to periodic inspections by the RBI.
3.    Any downgrade in the credit ratings could adversely affect the business.
4.    Negative cash flow in the past. 
5.    A significant portion of the NPAs are concentrated in loans to sectors such as biomass power and cogeneration, hydropower and wind power. 
6.    High working capital requirements. 
7.    The company and its borrowers are required to comply with GoI policies.
8.    It has a concentration of loans in certain states.
9.    The company operates in a highly competitive environment and increased competition in lending to the RE sector can impact the business.