IREDA Listing: The Union Cabinet on Friday approved the listing of Indian Renewable Energy Development Agency Limited (IREDA) on the stock exchanges through an initial public offering (IPO). Official sources said the objective is to raise funds by issuing fresh equity shares by IREDA. Sources said the Department of Investment and Public Asset Management (DIPAM) will go ahead with the listing process. The company will be listed through partial sale of government’s stake in the public sector unit.
The matter was going on for a long time
The decision supersedes the decision of the Cabinet Committee on Economic Affairs (CCEA) taken in June 2017, which permitted IREDA to issue 13.90 crore fresh equity shares of Rs 10 each to the public on book building basis through the IPO route Was given The change in capital structure after the government infused Rs 1,500 crore in March 2022 necessitated an immediate decision. The IPO will help unlock the value of the government’s investment on the one hand, and provide an opportunity to the public to acquire a stake in national wealth and benefit from it, on the other.
The decision will help IREDA to raise a part of its capital requirement
Furthermore, it will help IREDA to raise a part of its capital requirement to meet development plans without relying on public exchequer, and in governance through greater market discipline and transparency arising out of listing requirements and disclosures will improve.
What is IREDA
is a wholly owned mini-ratna company engaged in financing renewable energy and energy efficiency projects in India.
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