The Indian government is gearing up to file draft papers for the initial public offering (IPO) of the state-owned Indian Renewable Energy Development Agency (IREDA) by September, according to official sources cited in a report by PTI news agency.
Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated that merchant bankers have been appointed to carry out the valuation process. The filing of the draft red herring prospectus (DRHP) is expected to be completed within 3-4 months, possibly by September.
IREDA, a public sector enterprise operating under the Ministry of New and Renewable Energy (MNRE), specializes in financing renewable energy and energy efficiency projects.
Earlier this year, the Cabinet Committee on Economic Affairs (CCEA) granted approval for the listing of IREDA through an IPO. The move aims to partially sell the government’s stake in IREDA and generate funds by issuing fresh equity shares.
In a significant boost to the organization, the government infused Rs 1,500 crore in capital into IREDA in March 2022. The company achieved a record net profit of Rs 865 crore during the fiscal year 2022-23.
The upcoming IPO represents a strategic step by the Indian government to unlock the value of IREDA and attract investment to support the country’s renewable energy sector.