The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given of nod to the listing of IREDA – a Central Public Sector Undertaking (CPSUs) under the Ministry of New & Renewable Energy (MNRE) on the Stock Exchanges through an Initial Public Offer (IPO).
The government intends to raise funds via the part sale of its stake and issuing fresh equity shares. The Department of Investment and Public Asset Management (DIPAM) will lead 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 Rs 10 each to the public on a 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 1,500 crore by the Government in March 2022,” said CCEA in a press release.
#Cabinet approves listing of @IREDALtd on stock exchanges through an Initial Public Offer by part-sale of the Government’s stake in it and to raise funds through the issue of fresh equity shares by IREDA
Read here: https://t.co/OjBgPMQ0K6 #CabinetDecisions pic.twitter.com/l5ogLRsH0d
— PIB India (@PIB_India) March 17, 2023
“The Initial Public Offer (IPO) will help in unlocking the value of government’s investment on one hand and the other hand will provide an opportunity to the public to acquire a stake in the national asset and draw benefits therefrom, added CCEA.
With the received process, IREDA would be in a position to fulfill part of its capital requirement to execute growth plans without depending on the public exchequer. Further, improve governance through greater market discipline and transparency arising from listing requirements and disclosures.
What is IREDA?
IREDA is a 1987 incorporated fully-owned Mini-Ratna (Category-I) CPSE of the government of India. It finances Renewable Energy (RE) and Energy Efficiency (EE) projects in India. It is a registered Non-banking Financial Company (NBFC) with the Reserve Bank of India (RBI).
According to CCEA, the installation and management of IREDA’s renewable energy/energy efficiency projects are per their business plan. GoI’s RE targets will contribute to both direct and indirect employment generation possibilities for skilled and unskilled labor.
Thanks for the valuable informaton