The IREDA IPO will see sale of 13.90 crore equity shares of Indian Renewable Energy Development Agency and includes a reservation of up to 6.95 lakh equity shares for eligible employees
New Delhi: State-run Indian Renewable Energy Development Agency (IREDA) has filed draft papers with the Securities and Exchange Board of India (Sebi) to float an initial public offering (IPO).
The proposed share sale comes at a time when the government is working on ramping up renewable energy generation capacity as part of larger efforts to increase clean energy portfolios.
The IPO will see sale of 13.90 crore equity shares of the company, according to the draft red herring prospectus (DRHP) filed with Sebi. The IREDA IPO includes a reservation of up to 6.95 lakh equity shares for eligible employees. Proceeds from the issue will be used to augment the company’s capital base for meeting “future capital requirements and on-lending; and other general corporate purpose”.
“In addition, we believe that the listing of our equity shares will enhance our visibility and brand name among existing and potential customers,” IREDA said.
The listing of IREDA is expected to increase the paid-up share capital of the company from Rs784 crore to Rs923 crore. At present, the company has 78.46 crore equity shares. Yes Securities (India), Elara Capital (India) Pvt. Ltd, IDBI Capital Markets and Securities and SBI Capital Markets will manage the company’s public issue.
IREDA is a public financial institution established in March 1987 under the Companies Act, 1956. It is registered as a non-banking financial company with the Reserve Bank of India. Since its inception, IREDA has played a pioneering role in supporting and facilitating the policies and programme of the Ministry of New and Renewable Energy (MNRE) that has nurtured the renewable energy industry in the country.
IREDA has primarily worked with the private sector enterprises operating in the power sector. For the last three decades, IREDA has been supporting establishment of renewable energy projects and has greatly succeeded in commercialisation of sustainable energy technologies in the country.