Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated that the government is aiming to launch an initial public offering (IPO), for the Indian Renewable Energy Development Agency (IREDA), a clean energy lender, and WAPCOS state-owned engineering consulting firm in the next fiscal.
The proceeds from the stake sales would form part of the Budgeted disinvestment kitty of Rs 51,000 crore for the next fiscal, reports PTI.
“IREDA has been lined up to launch the IPO in the next fiscal. Pandey stated that a draft red herring prospectus (DRHP) has been filed for WAPCOS. DIPAM manages the government equity holding in public sector companies.
WAPCOS, an engineering consulting and construction services company under the Jal Shakti Ministry had filed draft papers with Sebi in September 2022 to launch an IPO. The plan was to sell 3.25 crore government shares.
The company’s revenue from operations stood at Rs 2,798 crore, while net profit was Rs 69.16 crore in 2021-22. The IPO of IREDA was approved by the Cabinet in 2017.
IREDA was to issue new 13.90 crore shares under the listing proposal. The Cabinet approved a Rs 1,500 crore equity injection in IREDA in January last year to increase its lending capacity and create more employment opportunities.
IREDA is a mini ratna firm under the administrative control of MNRE. It was established in 1987 as a specialised, non-banking financing agency for the renewable energy industry. The company has more than 35 years techno-commercial experience and plays an important role in RE project funding. This gives confidence to the FIs/banks to lend in the sector.