Indian Renewable Energy Development Agency Ltd. is looking to sell 13.9 crore share through its initial public offer that may open in June this year.
“We have got the permission of the Cabinet to raise up to 15 percent of the post-issue,” said Satish Kumar Bhargava, director-finance at the company. The offer received approval from the market regulator, Securities and Exchange Board of India, on Feb. 16.
Following the IPO, the government will sell some more stake through a follow-on public offering in the next two to three years, Bharagva told BloombergQuint on the sidelines of the launch of IREDA’s green masala bonds at National Stock Exchange’s international exchange in Gujarat.
The proceeds will be used for working capital requirements and lending operations, according to the company’s draft red herring prospectus filed with SEBI. The 30-year old non-banking financial firm lends to develop and promote various renewable energy projects across the country.
The issue comes at a time when the government is ramping up renewable energy efficiency in the country. The green energy capacity addition was the highest in 2016-17 at 11 gigawatts, compared to a 10.3 gigawatt capacity expansion for conventional energy, according to a May 2017 presentation of Ministry of New and Renewable Energy. India has set a target to add 175 gigawatts of clean energy till 2022.