State-run Indian Renewable Energy Development Agency (IREDA) has filed draft papers with markets regulator SEBI to float an initial public offering. 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 initial public offer (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 issue 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,” the company said.
The listing of IREDA is expected to 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. Yes Securities (India), Elara Capital (India) Pvt Ltd, IDBI Capital Markets & Securities and SBI Capital Markets will manage the company’s public issue.
Earlier in June, the Cabinet Committee on Economic Affairs had approved listing of the state-run firm to help it mobilise more funds for renewable projects.
IREDA is a public financial institution established in March 1987 under the Company’s 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.