Government approves IREDA IPO

20 Mar 2023 , 10:46 AM

The Cabinet Committee on Economic Affairs (CCEA) has approved the initial public offering (IPO) of Indian Renewable Energy Development Agency (IREDA) .

The company will part-sale government’s stake in it to raise funds and through fresh issue of equity shares. Department of Investment and Public Asset Management (DIPAM) will drive the listing process.

CCEA said in its statement, “This decision supersedes earlier CCEA decision taken in June, 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of Rs 10 each to the public on book building basis through IPO. The instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of Rs 1,500 crore by the Government in March, 2022.”

The IPO will help IREDA to raise the capital requirements for growth plans without depending on the government, and will also improve governance through greater market discipline and transparency arising from listing requirements and disclosures.

The government stated in its release, “The instant decision has been necessitated due to change in capital structure following infusion of capital.”

IREDA is a wholly-owned Government of India NBFC registered with RBI, incorporated in 1987 and is engaged in financing of Renewable Energy (RE) and Energy Efficiency (EE) projects in India.