Indian Renewable Energy Development Agency files IPO papers with Sebi

State-owned renewable energy financing body Indian Renewable Energy Development Agency Ltd filed papers for an initial public offering (IPO) with market regulator Sebi. In the last one year, after LIC, it is the second government-owned company and the first non-banking financial company in several years to file for an IPO.

IREDA, a mini-ratna public sector utility (PSU), provides financing to green energy projects. Under the aegis of the Ministry of New and Renewable Energy, IREDA started with financing solar and wind energy projects but has now branched to other green sectors too.

According to the draft red herring prospectus filed by IREDA, its IPO will consist of 67.19 crore equity shares with a fresh issue of 40.31 crore equity shares and an offer for sale (OFS) of 26.88 crore shares by the government. The net proceeds from the fresh issue will be utilised towards augmenting the capital base to meet future capital requirements and onward lending. The company will not receive any proceeds from the OFS, it said in its DRHP.

The offer is being made through the Book Building Process, wherein not more than 50 per cent of the offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15 per cent of the offer shall be available for allocation to Non-Institutional Bidders and not less than 35 per cent of the offer shall be available for allocation to Retail Individual Bidders.

In March this year, the Cabinet Committee on Economic Affairs (CCEA) approved the listing of IREDA. The company posted a record profit of Rs 865 crore in the financial year ending March 2023, registering an annual increase of 36 per cent.

As on June 2023, IREDA's portfolio of outstanding term loans stood at Rs 47,206.66 crore. The company's term loans outstanding are spread across 23 states.

IDBI Capital Markets & Securities Ltd, BOB Capital Markets Ltd, and SBI Capital Markets Ltd are the book-running lead managers and Link Intime India Pvt Ltd is the registrar to the offer.