Amidst its push for renewable energy, the government has approved the initial public offering of the Indian Renewable Energy Development Agency (IREDA) that comes under the Ministry of New & Renewable Energy.
For the stock market debut, the government will sell a part of its stake to raise funds for IREDA through issue of fresh equity shares.
The Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
Why list it now?
This decision follows changes in IREDA's capital structure following an investment of ₹ 1500 crore by the government in March, 2022.
The IPO will release the value of the government’s investment while allowing the public to acquire stake in the state-owned asset.
It will allow IREDA to raise a part of its capital requirement for meeting growth plans without depending on the government.
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