The Centre on Friday approved a proposal for listing of IREDA on stock exchanges through initial public offer by part sale of the government stake and fresh issue of equity shares to raise funds.
“Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved for listing of IREDA – a CPSE under Ministry of New & Renewable Energy on stock exchanges through an initial public offer (IPO) by part sale of government’s stake in it and to raise funds for IREDA through issue of fresh equity shares,” an official statement said.
The Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
This decision supersedes earlier CCEA decision taken in June 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of ₹10 each to the public on book building basis through an IPO.
The instant decision has been necessitated due to a change in capital structure following infusion of capital to the tune of ₹1,500 crore by the government in March 2022, it said.
The IPO will help in unlocking the value of the government’s investment on one hand and on the other hand will provide an opportunity to the public to acquire stake in the national asset and draw benefits therefrom, it stated. Besides, it will help IREDA in raising a part of its capital requirement for meeting growth plans without depending on the public exchequer, and improve governance through greater market discipline and transparency arising from listing requirements and disclosures, it added.
IREDA is a CPSE incorporated in 1987 and is engaged in financing of renewable energy and energy efficiency projects in India.
It is registered as a Non-banking Financial Company (NBFC) with the Reserve Bank of India (RBI).