Center approves listing of IREDA
The Center on Friday approved a proposal to list IREDA on stock exchanges through initial public offering through partial sale of government stake and fresh issue of equity shares to raise funds.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given approval for the listing of IREDA – a CPSE under the Ministry of New and Renewable Energy on the stock exchanges through an Initial Public Offer (IPO) of Govt. Partial sale of stake. and to raise funds for IREDA by issuing fresh equity shares, an official statement said.
The Department of Investment and Public Asset Management (DIPAM) will carry out the listing process.
This decision supersedes the earlier decision of CCEA in June 2017 to permit IREDA to issue 13.90 crore new equity shares of ₹10 each to the public on book building basis through IPO.
The immediate decision has been necessitated by the change in capital structure after the government infused Rs 1,500 crore in March 2022.
The IPO will help unlock the value of the government’s investment on the one hand and provide an opportunity to the public to acquire a stake in the national asset and benefit from it on the other. In addition, it will help IREDA to raise a part of its capital requirement to meet development plans without depending on public exchequer, and improve governance through greater market discipline and transparency arising out of listing requirements and disclosures Will do
IREDA is a CPSE incorporated in 1987 and is engaged in financing renewable energy and energy efficiency projects in India.
It is registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC).