Govt likely to submit IREDA public offering draft papers by September

Govt likely to submit IREDA public offering draft papers by September

Government Plans to Submit IREDA IPO Draft Papers by September

The Indian government is making preparations to initiate the process of an initial public offering (IPO) for the state-owned Indian Renewable Energy Development Agency (IREDA). According to official sources cited in a report by news agency PTI, draft papers for the IPO are expected to be filed by September.

Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated, “We have appointed the merchant bankers, and they will proceed with the valuation. We anticipate being able to submit the Draft Red Herring Prospectus (DRHP) within the next 3-4 months, potentially by September.”

IREDA, an enterprise under the Ministry of New and Renewable Energy (MNRE), plays a significant role in financing renewable energy and energy efficiency projects in India. As part of its strategic move, the Cabinet Committee on Economic Affairs (CCEA) approved the listing of IREDA through an IPO. This decision will enable the government to sell a portion of its stake and generate funds for IREDA by issuing fresh equity shares.

Also Read: State-Owned IREDA to List on Stock Market via Stake Sale Approval

The government had previously provided a substantial boost to IREDA in March 2022 when it infused Rs 1,500 crore in the capital. This injection of funds strengthened the company’s financial position. As a result, IREDA achieved an impressive net profit of Rs 865 crore during the fiscal year 2022-23, marking an all-time high.

The IPO announcement demonstrates the government’s commitment to renewable energy development and its efforts to capitalize on the growing demand for sustainable energy solutions in India. The successful IPO will not only provide IREDA with additional resources but also pave the way for further expansion and investment in the renewable energy sector.

About IREDA:

IREDA, short for Indian Renewable Energy Development Agency, is a prominent Government of India Enterprise that has been actively operating since its establishment in 1987. The company holds the esteemed classification of being a Mini Ratna, reflecting its significant contributions to the renewable energy sector. It operates under the administrative control of the Ministry of New and Renewable Energy.

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