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Renewable Energy Agency IREDA Files IPO Papers With SEBI

The initial public offer will see sale of 13.90 crore equity shares of IREDA.

The silhouettes of wind turbines are seen standing at a farm. (Photographer: Daniel Acker/Bloomberg)
The silhouettes of wind turbines are seen standing at a farm. (Photographer: Daniel Acker/Bloomberg)

State-run Indian Renewable Energy Development Agency has filed its draft prospectus with market regulator SEBI to float an initial public offering.

The proposed share-sale comes at a time when the government is working on ramping up renewable energy generation capacity as part of larger efforts to increase clean energy portfolios.

The initial public offer will see sale of 13.90 crore equity shares of the company, according to the draft red herring prospectus filed with the Securities and Exchange Board of India. The issue includes a reservation of up to 6.95 lakh equity shares for eligible employees.

Proceeds from the issue will be used to augment the company’s capital base for meeting “future capital requirements and on-lending; and other general corporate purpose”.

In addition, we believe that the listing of our equity shares will enhance our visibility and brand name among existing and potential customers.
IREDA’s Draft Prospectus

The listing of IREDA is expected to increase the paid-up share capital of the company from Rs 784 crore to Rs 923 crore. At present, the company has 78.46 crore equity shares.

Yes Securities (India), Elara Capital (India) Pvt Ltd, IDBI Capital Markets & Securities and SBI Capital Markets will manage the company's public issue.

In June, the Cabinet Committee on Economic Affairs had approved listing of the state-run firm to help it mobilise more funds for renewable projects.

IREDA is a public financial institution established in March 1987 under the Company's Act, 1956. It is registered as a non-banking financial company with the Reserve Bank of India.

Since its inception, IREDA has played a pioneering role in supporting and facilitating the policies and programme of the Ministry of New and Renewable Energy that has nurtured the renewable energy industry in the country.