India’s principal clean energy financing institution, the Indian Renewable Energy Development Agency, is targeting to hit the bourses in the third quarter of financial year 2018.
13.90 crore shares on offer
A top IREDA official told BusinessLine, “The government will not be diluting its stake, but the listing will be through issuance of fresh shares. The process to work out the mechanism will take at least six to eight months.”
The company was initially exploring the possibility of a rights issue. This was dropped and the government decided that IREDA should go for a public issue of fresh shares after boosting it’s equity. The Department of Investment and Public Assets Management is working on the roadmap for the same.
According to the company, the board of directors, in February 2017, had approved the IPO proposal of 13.90 crore fresh equity shares with face value of ₹10 each. The initiative would help IREDA increase its networth, facilitating lending to larger projects. The said fresh issue of shares shall be at a price to be determined through a book-building process.
The IPO process is expected to be completed within six month from the date of approval of the Cabinet Committee on Economic Affairs.
IREDA’s loan sanctions have grown to ₹7,806 crore in fiscal 2015-16 from ₹826 crore in fiscal 2007-08, at a CAGR of 32 per cent, and are expected to cross ₹10,000 crore during financial year 2016-17.
Loan disbursements have also followed lead with loan sanctions and have grown to ₹4,257 crore in 2015-16 from ₹553 crore in 2007-08, at a CAGR of 29 per cent and are likely to cross ₹6,000 crore in the financial year 2016-17.
The growth is also reflected in the profitability of the company with profit after tax increasing to ₹298.04 crore in 2015-16 from ₹ 47.96 crore in 2007-08. The company maintains a substantial share of the renewable energy financing market.