To raise money via an initial public offering (IPO), the government-owned Indian Renewable Energy Development Agency (Ireda) has submitted its draught red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi).
After the public offering of Life Insurance Corp. in May of last year, this is the first IPO by a public sector company.
The fresh issuance will consist of up to 403.16 million shares, and the president of India, acting via the Ministry of New and Renewable Energy, the government of India, would offer up to 268.78 million equity shares for sale (OFS).
The new issue’s proceeds will be added to Ireda’s capital base to help it fulfill its future lending needs, according to the DRHP.
As issue managers, the business has chosen IDBI Capital Markets & Securities Ltd., BOB Capital Markets Ltd., and SBI Capital Markets Ltd.
As a Mini Ratna company with administrative oversight from the Ministry of New and Renewable Energy (MNRE), Ireda was established in 1987. Irda is engaged in fostering, establishing, and providing financial support for the establishment of initiatives linked to innovative and renewable sources of energy and energy efficiency/conservation.
It is the biggest non-banking finance company (NBFC) in India that specializes in green financing and has a broad investment portfolio of 47,206.66 crore that spans 23 states and five union territories. Ireda provides NBFCs with lines of credit, top-up loans, bridging loans, takeover financing, long-term, medium-term, and short-term loans, as well as loans secured against future cash flows. Additionally, it provides non-fund-based goods such as consulting services, letters of comfort, letters of undertaking, payment-on-order instruments, and guarantee assistance programs.
Ireda approved loans of 32,586.61 crore and 1,892.45 crore for the fiscal year that concluded on June 30, 2023, respectively. Its debt instruments have received the following ratings from India Ratings: AAA Stable; ICRA; and Acuite.
The standalone revenue from operations for the 2023 fiscal year increased by 21.75% year over year to 3,481.97 crore. To 864.63 crore, net profit climbed 36.48% year over year. The capital to risk-weighted asset ratio (or “CRAR”) was 18.82% for the fiscal year 2023 and 19.95% for the three months ending on June 30, 2023.
