Cabinet approves IREDA Limited to come up with a Public Issue of Shares
New Delhi (Best Hindu News): The government has decided to public sale part of the government’s stake in the Indian Renewable Energy Development Agency Ltd (IREDA), a renewable energy financing company, and primary shares by the company to raise funds by issue of fresh equity shares. The proposal to bring issue (IPO) was approved on Friday.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the proposal to list IREDA on the stock exchange. IREDA is a public sector undertaking under the Ministry of New and Renewable Energy (MNRE).
IREDA Ltd. is a Non-Banking Financial Company engaged in the business of financing Renewable Energy (RE) and Energy Efficiency (EE) projects in India. The entire shares of this Mini Ratna Company are presently held by the Government.
A government release issued after the CCES meeting said the process of listing IREDA will be taken forward by the Department of Investment and Public Asset Management (DIPAM).
This decision supersedes CCEA’s decision of June, 2017, wherein the company was allowed to issue 13.90 crore fresh equity shares of face value of Rs.10 each through IPO on book building basis.
The Center had just infused Rs 1,500 crore in IREDA in March last year. In view of the changes in the capital structure of the company since then, the government has taken this new decision.
The government believes that IREDA’s IPO will help the government to unleash its investment and at the same time common people will also get an opportunity to become part of this national asset. This initiative will reduce IREDA’s dependence on government funds for its schemes.
Post listing the company will have to conduct its operations as per the market conditions which will increase the transparency in its operations.