The Cabinet Committee on Economic Affairs is likely to approve the initial public offer of state-run Indian Renewable Energy Development Agency (IREDA), a move aimed at mobilising more funds for clean energy. “The initial public offer proposal of IREDA is listed for the meeting of the Cabinet Cabinet Committee on Economic Affairs (CCEA) scheduled tomorrow,” a source said.
The source said that under the listing proposal, the IREDA would issue fresh 13.90 crore shares, which would increase the paid up share capital of the company from Rs 784 crore to Rs 923 crore. At present the company has 78.46 crore equity shares. The quantum of funds to be raised through the IPO will be ascertained later as the shares would be issued on premium through book building process. Thus, there will be a price discovery.
After the CCEA approval, it will take 180 days to list the IREDA, which is non-banking financial firm. IREDA has plans to disburse Rs 13,000 crore for clean energy projects this fiscal and vying for around 20 per cent of the loan market share for such projects. With the government aiming at adding around 15 to 16 GW of clean energy projects, including solar and wind, there would be total credit market size of around Rs 65,000 crore this fiscal.
IREDA has sanctioned around Rs 37,000 crore of credit for clean energy projects in the country so far and has released around Rs 28,000 crore to developers, which aids generation capacity of around 7,000 MW.