IREDA To Go Public

Indian Cabinet Approves IPO For Indian Renewable Energy Development Agency
02:47 AM (Beijing Time) - 08. June 2017

Key Takeaways

  • Indian government has approved an initial public offering of Indian Renewable Energy Development Agency (IREDA)
  • IREDA will issue 13.9 million fresh equity shares for 10 INR ($0.016) each on book-building basis
  • Employees of IREDA and retail investors will get a discount of 5% on the issue price of each equity share
  • IREDA will use this money to raise more debt resources to fund renewable energy projects
  • The IPO is planned to help the agency increase its visibility in domestic and international financial markets

The Indian Renewable Energy Development Agency (IREDA) has received the green signal from Indian Cabinet to go public. Indian Cabinet Committee on Economic Affairs (CCEA), chaired by Indian Prime Minister Narendra Modi, gave its formal approval on June 7, 2017 to IREDA’s initial public offering (IPO).

IREDA will issue 13.9 million fresh equity shares for a targeted 10 INR ($0.016) per share on book-building basis. Retail investors and IREDA employees can avail a discount of 5% on the issue price of each equity share on book-building basis. The number of shares to be issued to employees and retail investors will be finalized in consultation with the lead managers and as per Securities and Exchange Board of India (SEBI).

With this IPO, IREDA wants to increase its equity base and be able to raise more debt resources to fund renewable energy projects. The agency will raise equity funds to leverage loan financing for the renewables sector. It will also enable it to increase its visibility in domestic and international financial markets.   

Recently, the government announced that IREDA will help generate $365.7 million for renewable energy project during FY 2017-18 (see India To Raise RE Bonds).

 

Anu Bhambhani

Anu Bhambhani is the News Editor of TaiyangNews

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Anu Bhambhani