IREDA IPO Expected By September

IREDA will issue fresh 13.90 crore shares, increasing the paid-up share capital of the company from Rs 784 crore to Rs 923 crore.

The initial public offer (IPO) of state-owned Indian Renewable Energy Development Agency (IREDA) will be launched before September 2019, a top official has confirmed. 

“We can raise up to 15 percent of our equity. The approval was for 13.90 crore equity shares. This will be around (worth) Rs 750 crore. That is not much, but it will help,” IREDA Chairman and MD, Kuljit Singh Popli said. 

In June 2017, the Cabinet Committee on Economic Affairs (CCEA) had approved the listing of IREDA. 

Under the listing proposal, IREDA will issue fresh 13.90 crore shares, increasing the paid-up share capital of the company from Rs 784 crore to Rs 923 crore. The company has 78.46 crore equity shares. 

“The IPO would be done before September 2019,” Popli said on the sidelines of a conference on renewables organised by PHDCCI. 

The quantum of funds to be raised through the IPO will be ascertained later as the shares will be issued at a premium through the book building process, which will lead to price discovery. 

About the loan disbursals, Popli said the company would be disbursing around Rs 9,500 crore loans for projects this fiscal, which would be increased by around 30 percent in 2019-20. 

He added that the company has approval for up to Rs 4,000 crore borrowing till the end of next fiscal, for financing clean energy projects. 

While addressing the conference, Popli also said the tariff for 7.5 GW solar project in Ladakh is being worked out in the range of Rs 4.5 to Rs 5 per unit, factoring in financial assistance and other incentives.