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New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved the listing of IREDA, a PSU under the Ministry of New & Renewable Energy (MNRE), on the stock exchanges through an Initial Public Offer (IPO) by part-sale of the government’s stake in the company to raise funds for IREDA through the issue of fresh equity shares. The listing process will be undertaken by the Department of Investment and Public Asset Management (DIPAM).
“This decision supersedes the earlier CCEA decision taken in June 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of Rs 10.00 each to the public on a book-building basis through IPO. The instant decision has been necessitated due to a change in capital structure following the infusion of capital to the tune of Rs 1,500 crore by the government in March 2022,” said an official statement.
The IPO will not only help in unlocking the value of the government’s investment but will also provide an opportunity to the public to acquire a stake in the national asset and draw benefits therefrom. Besides, it will help IREDA in raising part of its capital requirement for meeting its growth plans without depending on the public exchequer and improving governance through greater market discipline and transparency arising from listing requirements and disclosures.
IREDA is currently a wholly-owned Miniratna (Category-I) CPSE. It was incorporated in 1987 and is engaged in financing of Renewable Energy (RE) and Energy Efficiency (EE) projects in India. It is registered as a Non-banking Financial Company (NBFC) with the Reserve Bank of India (RBI). IREDA has a pivotal role to play in India’s target of achieving 175 GW of installed RE capacity by 2022 and 500 GW by 2030.
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