IREDA files papers for IPO
MUMBAI : State-owned Indian Renewable Energy Development Agency Ltd has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise funds through its initial public offering (IPO). Indian Renewable Energy Development Agency’s IPO is first by a public sector enterp-rise after Life Insurance Corp.’s issue in May 2022. The IPO will comprise a fresh issue of up to 403.16 million shares and an offer for sale (OFS) of up to 268.78 million equity shares by the President of India, acting through the ministry of new and renewable energy.
The offer includes a reservation for subscription by employees. According to the draft red herring prospectus (DRHP), the proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending. The company has appointed IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd as managers to the issue.
Indian Renewable Energy Development Agency Ltd (IREDA) was formed in 1987 as a Mini Ratna (Category – I) government enterprise. The organisation was formed to promote, develop and extend financial assistance to set up projects related to new and renewable sources of energy and energy efficiency/ conservation. IREDA is India’s largest dedicated green financing non-banking financial company (NBFC).
It has a diverse investment portfolio worth ₹47,206.66 crore, spanning 23 states and 5 UTs. IREDA’s fund-based products are long-term, medium-term, and short-term loans, top-up loans, bridge loans, takeover financing, loans secured against future cashflows, and lines of credit to NBFCs. It also offers non-fund-based products such as letters of comfort, letters of undertaking, payment on
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