The Cabinet Committee on Economic Affairs (CCEA) on Friday approved a proposal for the listing of IREDA on stock exchanges through an initial public offer by the part sale of the government stake and fresh issue of equity shares to raise funds.
The listing process will be driven by the Department of Investment and Public Asset Management (DIPAM). A decision taken by the CCEA in June 2017 for IREDA to issue 13.90 crore new equity shares of Rs 10 each through an IPO has been superseded by this decision. The instant decision was made in response to an infusion by the government of capital amounting to Rs 1,500 crore in March 2022 that resulted in a change in capital structure.
IPO will help unlock the value of government investments on the one hand and provide the public with opportunities to buy stakes in national assets and derive benefits from them.
Besides, it will help IREDA raise a part of its capital requirement for meeting growth plans without depending on the public exchequer. It will also improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
IREDA is currently wholly owned by the Government of India, Mini-Ratna, and is engaged in financing Renewable Energy (RE) and Energy Efficiency (EE) projects in India.
