IREDA Files for IPO: Pioneering Green Energy Financing

The Indian Renewable Energy Development Agency Ltd (IREDA), a state-owned financing body for renewable energy projects, has filed for an initial public offering (IPO) with market regulator Sebi. This move makes IREDA the second government-owned company, after LIC, and the first non-banking financial company in several years to file for an IPO.

IREDA, a mini-ratna public sector utility under the Ministry of New and Renewable Energy, initially focused on financing solar and wind energy projects. Over time, it has expanded its scope to cover various green sectors.

The IPO comprises 67.19 crore equity shares, with 40.31 crore shares offered as fresh issue and 26.88 crore shares for sale by the government. The net proceeds from the fresh issue will be used to strengthen the capital base for future lending, while the company will not receive any proceeds from the offer for sale (OFS).

The offer will follow the Book Building Process, with allocations for Qualified Institutional Buyers, Non-Institutional Bidders, and Retail Individual Bidders set at 50%, 15%, and 35% respectively.

In March of the same year, the Cabinet Committee on Economic Affairs (CCEA) granted approval for IREDA's listing. The company reported a record profit of Rs 865 crore in the fiscal year ending March 2023, marking a 36% annual increase.

As of June 2023, IREDA's outstanding term loans amounted to Rs 47,206.66 crore, spread across 23 states.