The Centre on Friday permitted a proposal for listing of IREDA on inventory exchanges by way of preliminary public provide by half sale of the federal government stake and contemporary subject of fairness shares to lift funds.
“Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved for listing of IREDA – a CPSE under Ministry of New & Renewable Energy on stock exchanges through an initial public offer (IPO) by part sale of government’s stake in it and to raise funds for IREDA through issue of fresh equity shares,” an official assertion mentioned.
The Department of Investment and Public Asset Management (DIPAM) will drive the listing course of.
This determination supersedes earlier CCEA determination taken in June 2017 for permitting IREDA to subject 13.90 crore contemporary fairness shares of ₹10 every to the general public on e-book constructing foundation by way of an IPO.
The on the spot determination has been necessitated as a consequence of a change in capital construction following infusion of capital to the tune of ₹1,500 crore by the federal government in March 2022, it mentioned.
The IPO will assist in unlocking the worth of the federal government’s funding on one hand and alternatively will present a chance to the general public to accumulate stake within the nationwide asset and draw advantages therefrom, it acknowledged. Besides, it can assist IREDA in elevating a component of its capital requirement for assembly development plans with out relying on the general public exchequer, and enhance governance by way of larger market self-discipline and transparency arising from listing necessities and disclosures, it added.
IREDA is a CPSE integrated in 1987 and is engaged in financing of renewable power and power effectivity tasks in India.
It is registered as a Non-banking Financial Company (NBFC) with the Reserve Bank of India (RBI).
