Latest News | State-owned IREDA Files Draft Papers with Sebi
Get latest articles and stories on Latest News at LatestLY. State-run Indian Renewable Energy Development Agency (IREDA) has filed preliminary papers with markets regulator Sebi to raise funds through an Initial Public Offering (IPO).
New Delhi, Sep 11 (PTI) State-run Indian Renewable Energy Development Agency (IREDA) has filed preliminary papers with markets regulator Sebi to raise funds through an Initial Public Offering (IPO).
This is the third time that the state-owned company has filed its IPO papers and is proposing to take the firm public after two failed attempts in 2017 and 2019 in the backdrop of unfavourable market conditions.
The IPO consists of a fresh issue of up to 40.31 crore equity shares and an Offer For Sale (OFS) of up to 26.88 crore equity shares by the President of India, acting through the Ministry of New and Renewable Energy, Government of India, according to the Draft Red Herring Prospectus (DRHP) that was filed on Thursday.
The offer is being made through the book building process, wherein not more than 50 per cent of the issue shall be available for allocation to qualified institutional buyers.
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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 for retail individual bidders.
It is the first public issue by a public sector enterprise after Life Insurance Corporation's IPO in May last year.
Proceeds from the fresh issue will be used for augmenting IREDA's capital base to meet its future capital requirements and onward lending.
IREDA is a mini ratna firm with administrative controls with the Ministry of New and Renewable Energy.
The organisation offers a comprehensive array of financial products (fund and non-fund based) and associated services, from project inception to post-completion, for renewable energy projects and related activities like equipment manufacturing and transmission.
As of June 30, its portfolio of outstanding term loans stood at Rs 47,206.66 crore, reflecting its diverse investment ventures.
During FY23 and the first three months of the current fiscal, IREDA sanctioned total loans amounting to Rs 32,586.61 crore and Rs 1,892.45 crore, respectively.
BOB Capital Markets Ltd, SBI Capital Markets Ltd and IDBI Capital Markets & Securities Ltd are the book-running managers to the issue.
The shares of the company will be listed on the BSE and NSE.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)