The Union Cabinet on Wednesday has approved an IPO by the Indian Renewable Energy Development Agency (IREDA), which is expected to bring in a revenue of at least Rs 139 crore.
IREDA is registered as a non-banking financial company and has worked closely with the Ministry of New and Renewable Energy to help implement its policies.
The Cabinet approved an issue of 13,90,00,000 equity shares of₹10 each. Also approved were the issues of shares to retail investors and IREDA employees at a discount of 5% on the issue price, with cap of 0.5% on equity post issue for CPSE employees.
“The public issue of equity will enable IREDA to increase its equity base which will help them raise more debt resources for funding RE (renewable energy) projects,” the official statement said. “Such public issue will also enable it to unlock its true value and increase its visibility in domestic and international financial markets.”
The exact number of shares proposed to be issued to the employees and retail investors will be finalised in consultation with the lead managers and as per the SEBI regulations.
“IREDA has to cater to the increasing needs of the sector to sustain its contribution to the renewable energy sector,” the statement added. “Government of India has scaled-up the RE targets to 175 GW by the year 2022. To achieve this ambitious target, substantial investments in RE sector will be required.”
