New Delhi (18.03.2023): The CCEA chaired by Prime Minister Narendra Modi has approved the listing of IREDA on the Stock Exchanges through an Initial Public Offer (IPO) by part sale of Government’s stake in it and to raise funds for IREDA through issue of fresh equity shares. Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
This decision supersedes earlier CCEA decision taken in June, 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of ₹ 10.00 each to the public on book building basis through IPO. The instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of ₹ 1500 crore by the Government in March, 2022.
The Initial Public Offer (IPO) will help in unlocking the value of Government’s investment on one hand and on the other hand will provide an opportunity to the public to acquire stake in the national asset and draw benefits therefrom. Besides, it will help IREDA in raising a part of its capital requirement for meeting growth plans without depending on the public exchequer, and improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
IREDA is currently a wholly owned Government of India, Mini-ratna and is engaged in financing of Renewable Energy (RE) and Energy Efficiency (EE) projects in India.