NBFC Set To Play Key Role In Renewable Energy
The issue will be part sale of the Government’s stake in the company and to raise funds for IREDA through issue of fresh equity shares.
NEW DELHI, Mar 17 (The CONNECT) – The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved for listing of IREDA – a CPSE under Ministry of New & Renewable Energy (MNRE) on the Stock Exchanges through an Initial Public Offer (IPO).
The issue will be part sale of the Government’s stake in the company and to raise funds for IREDA through issue of fresh equity shares. Department of Investment and Public Asset Management (DIPAM) will drive the listing process.
This decision supersedes earlier CCEA decision taken in June 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of ₹ 10 each to the public on book building basis through IPO. The present decision has been necessitated due to change in capital structure following infusion of capital to the tune of ₹ 1,500 crore by the Government in March 2022.
The IPO will help unlock the value of Government’s investment on one hand and on the other hand will 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 and improve governance through greater market discipline and transparency arising from listing requirements and disclosures, the government said.
IREDA is currently is a Mini-ratna (Category-I) CPSE incorporated in 1987 engaged in financing of Renewable Energy (RE) and Energy Efficiency (EE) projects in India.
It is registered as a Non-banking Financial Company (NBFC) with the Reserve Bank of India (RBI). The Government, in line with the pledge made as a part of Nationally Determined Contribution (NDC) in Paris Accord on Climate Change has set the targets of achieving 175 GW of installed RE capacity by 2022 and 500 GW by 2030. IREDA has a pivotal role to play in achievement of RE targets.
The implementation and operation of Renewal Energy/Energy Efficiency projects by IREDA as per their Business Plan in line with the RE targets of GoI will help in creating direct and indirect employment opportunities for both skilled and unskilled manpower.