New Delhi : The government on Wednesday approved listing of state-run Indian Renewable Energy Development Agency (IREDA) to help the clean energy lender mobilise more funds for renewable projects.
“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval to issue 13,90,00,000 fresh equity shares of Indian Renewable Energy Development Agency (IREDA) of Rs 10 each to the public on book-building basis through the IPO (initial public offer),” an official statement said.
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. The CCEA approval is significant because IREDA has plans to disburse Rs 13,000 crore for clean energy projects this fiscal and is vying for around 20 per cent of the loan market share for such projects.
With the government aiming to add around 15 to 16 GW of clean energy projects, including solar and wind, there would be total credit market size of around Rs 65,000 crore this fiscal.
IREDA has sanctioned around Rs 37,000 crore of credit for clean energy projects in the country so far and has released around Rs 28,000 crore to developers, which aids generation capacity of around 7,000 MW. According to the statement, the CCEA also approved issuance of shares to retail investors and IREDA employees at a discount of 5 per cent on the issue price of each equity share on book-building basis with a cap of 0.5 per cent on equity post issue for CPSE employees and the allocation to retail investors in the net offer will not be less than 35 per cent, as per the ICDR, 2009.
However, it said the number of shares proposed to be issued to employees and retail investors will be finalised in consultation with the lead managers and as per the SEBI regulations.
