Cabinet approves IPO of Indian Renewable Energy Development Agency
New Delhi [India], June 7 (ANI): The Cabinet Committee on Economic Affairs on Wednesday announced giving 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.
Chaired by the Prime Minister Narendra Modi, the committee announced its approval towards issue of shares to retail investors and IREDA employees at a discount of five percent on the issue price of each equity share on book-building basis, with cap of 0.5 percent on equity post issue for CPSE employees and the allocation to retail investors in the net offer will not be less than 35 percent, as per the ICDR, 2009.
However, the number of shares proposed to be issued to employees and retail investors will be finalized in consultation with the lead managers and as per the SEBI regulations.
The Public issue of equity will enable IREDA to increase its equity base which will help them raise more debt resources for funding RE projects. Such public issue will also enable it to unlock its true value and increase its visibility in domestic and international financial markets. IREDA, being the premier institution for RE Sector, will be required to raise equity funds to leverage loan financing for RE Sector.
IREDA has to cater to the increasing needs of the sector to sustain its contribution to the Renewable Energy Sector. Government of India has scaled-up the RE targets to 175 GW by the year 2022. To achieve this ambitious target, substantial investments in RE sector will be required. (ANI)