Cabinet approves listing of IREDA on Stock Exchanges
Union Government on Friday approved for listing of the Indian Renewable Energy Development Agency (IREDA) on the Stock Exchanges. The Cabinet Committee on Economic Affairs (CCEA) decided to approve an Initial Public Offer (IPO) by part sale of Government’s stake in the CPSE to raise funds through issue of fresh equity shares. Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
The IPO will help in unlocking the value of Government’s investment on one hand and provide an opportunity to the public to acquire stake in the national asset and draw benefits therefrom. Besides, it will help IREDA in raising a part of its capital requirement for meeting growth plans without depending on the public exchequer. The step will improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
This decision supersedes earlier CCEA decision taken in June, 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of 10 rupees 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 1500 crore rupees by the Government in March last year.
IREDA is currently a wholly owned Government of India, Mini-ratna (Category-I) CPSE incorporated in 1987 and is engaged in financing of Renewable Energy and Energy Efficiency projects in India. It is registered as a Non-banking Financial Company NBFC with the Reserve Bank of India.
The Government, in line with the pledge made as a part of Nationally Determined Contribution in Paris Accord on Climate Change has set the targets of achieving 175 Giga Watt of installed Renewable Energy capacity by 2022 and 500 Giga Watt by 2030. IREDA has a pivotal role to play in achievement of Renewable Energy targets.
The implementation and operation of Renewal Energy or Energy Efficiency projects by IREDA as per their Business Plan in line with the Renewable Energy targets of Government of India will help in creating direct and indirect employment opportunities for both skilled and unskilled manpower.