The Cabinet Committee on Economic Affairs (CCEA) has approved listing of Indian Renewable Energy Development Agency Limited (IREDA) on the stock exchanges through an initial public offer (IPO).
This will be done 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. The instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of Rs 15 billion by the government in March, 2022. The 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. This decision supersedes earlier CCEA decision taken in June, 2017 for allowing IREDA to issue 139 million fresh equity shares of Rs 10 each to the public on book building basis through IPO.