New Delhi: Union Government approved listing of the Indian Renewable Energy Development Agency (IREDA) on the Stock Exchanges.
The Cabinet Committee on Economic Affairs (CCEA) decided to approve an Initial Public Offer (IPO) by the part sale of the Government’s stake in the CPSE to raise funds through the issue of fresh equity shares. Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
The IPO will help in unlocking the value of the Government’s investment on one hand and provide an opportunity for the public to acquire a 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. The step will improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
This decision supersedes the earlier CCEA decision taken in June 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of 10 rupees each to the public on a book-building basis through IPO.
The instant decision has been necessitated due to a change in capital structure following the infusion of capital to the tune of 1500 crore rupees by the Government in March last year.
IREDA is currently a wholly owned Government of India, Mini-Ratna (Category-I) CPSE incorporated in 1987 and is engaged in the financing of Renewable Energy and Energy Efficiency projects in India. It is registered as a Non-banking Financial Company NBFC with the Reserve Bank of India.
The Government, in line with the pledge made as a part of the Nationally Determined Contribution to the Paris Accord on Climate Change, has set the targets of achieving 175 Giga Watt of installed Renewable Energy capacity by 2022 and 500 Giga Watt by 2030. IREDA has a pivotal role to play in the achievement of Renewable Energy targets.
The implementation and operation of Renewal Energy or Energy Efficiency projects by IREDA as per their Business Plan in line with the Renewable Energy targets of the Government of India will help in creating direct and indirect employment opportunities for both skilled and unskilled manpower.