The Cabinet Committee on Economic Affairs (CCEA) chaired by the Indian prime minister Mr Narendra Modi approved for listing of Indian Renewable Energy Development Agency (IREDA) on the stock exchanges through an initial public offer (IPO) by part sale of government’s stake in it and 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. This decision supersedes earlier CCEA’s decision taken in June, 2017 for allowing IREDA to issue 139 million fresh equity shares of Rs 10 each to the public on book building basis through IPO. The instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of Rs 15 billion by the government in March, 2022.
The IPO will help in unlocking the value of the government’s investment. It will also provide an opportunity to the public to acquire stake in the national asset and draw benefits. Besides, it will help IREDA in raising a part of its capital requirement for meeting growth plans without depending on the public exchequer, and improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
The implementation and operation of renewable energy or energy efficiency projects by IREDA as per their business plan in line with the renewable energy targets of the Indian government will help in creating direct and indirect employment opportunities for both skilled and unskilled manpower.
