IREDA IPO receives CCEA nod

The Cabinet Committee on Economic Affairs (CCEA) has on June 7, 2017 granted approval to the initial public offer (IPO) of Indian Renewable Energy Development Agency (IREDA). The proposed IREDA IPO will comprise of 13.9 crore equity shares of Rs 10 each.

The IPO will help the company to increase its visibility in financial markets, both domestically and internationally, and also help in increasing its equity base, which will enable the company to raise more debt for the purpose of funding its renewable energy projects.

In the financial year 2017-18, IREDA has sanctioned Rs 1,220.6 crore loans for renewable energy projects, out of which IREDA has disbursed Rs 925.7 crore. The maximum amount sanctioned for solar project is Rs 734 crore and for wind project Rs 225 crore.

The CCEA has approved the issue of shares at a discount of 5 per cent on issue price of each share to both retail investors and IREDA employees.

By 2022, government has set the target to achieve generation of renewable energy of 175 gigawatt and in order to achieve this target a huge investment is required in renewable energy sector.