IREDA Files IPO Papers with SEBI


Proceeding with its plan of launching an Initial Public Offering (IPO), the Indian Renewable Energy Development Agency (IREDA) has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI). IREDA plans to issue 139 million equity shares priced at ₹10 (~$0.16) each as part of its IPO.

The shares will be issued for purchase by the public on a book-building basis. The agency will issue shares to retail investors and its employees at a discount of 5 percent on the issue price of each share. The agency has reserved 695,000 equity shares for its employees.

YES Securities (India) Limited, Elara Capital (India) Private Limited, IDBI Capital Markets & Securities Limited, SBI Capital Markets Limited, and Link Intime India Private Limited will be managing IREDA’s IPO. The shares will be traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

This IPO will help IREDA increase its equity base by creating a larger debt resource for lending. This will be a welcome move for the Indian renewable energy sector as IREDA is the only specialized financial institution lending to renewable energy projects in India, as of now.

An IREDA official had previously told Mercom, “This year, the government had slashed IREDA’s borrowing target by close to 34-35 percent. Now, we will be able to fund more projects as this IPO will infuse more funds into IREDA’s account.”

Mercom had previously reported that the Cabinet Committee on Economic Affairs approved the launch of IREDA’s IPO on June 7, 2017.

To finance the country’s renewable energy dream, the IREDA recently raised $300 million (~₹19.5 billion) through the issuance of Green Masala Bonds on the Singapore Exchange (SGX).

Mercom has also recently reported that SEBI has approved ACME Solar Holdings’ Initial Public Offering (IPO) worth ₹22,000 million (~$336.86 million).