Government Invites Bids from Merchant Bankers for IREDA IPO

The Indian government has announced plans to list shares of Indian Renewable Energy Development Agency Limited (IREDA) on the stock exchanges, as well as raise fresh equity share capital through a prospectus-based initial public offer (IPO) in the domestic market.

This entails the partial sale of the government’s stake in IREDA, with a dilution of up to 25%. The percentage of paid-up equity to be divested or issued as part of the IPO will be determined based on IREDA’s post-issue capital calculated in accordance with clause 19 (2) of the Securities Contracts (Regulation) Rules, 1957. A part of the public offering may be reserved for IREDA employees as per Securities and Exchange Board of India (SEBI) rules and regulations.

The Department of Investment and Public Asset Management, Ministry of Finance, on behalf of the government, is inviting proposals/bids from reputed Category-I Merchant Bankers registered with SEBI. The merchant bankers should either be a single entity or consortium with experience and expertise in public offerings in the capital market. They will act as Book Running Lead Managers (BRLMs) and assist and advise the government/IREDA in the process. The Certificate of Registration with SEBI should remain valid till the completion of all activities relating to the IPO.

Up to three merchant bankers with requisite experience in public offerings will be selected and appointed by the government to form a team, called the BRLMs, in consultation with the government. They will form a syndicate as required under the SEBI guidelines/regulations. The government has the option of appointing additional syndicate members if considered necessary.

The deadline for bid submission is 28 April 2023, 3:00 P.M. and the bid opening date is 01 May 2023, 3:00 P.M.

View the official document here: