State-owned Indian Renewable Energy Development Agency Ltd (IREDA) has filed the draft red herring prospectus (DRHP) with capital markets regulator Sebi to raise funds through an initial public offering (IPO). This will be the first IPO by a public sector enterprise after Life Insurance Corporation's public issue in May 2022.

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The IPO of 67.19 crore equity shares will consist of a fresh issue of 40.31 crore equity shares by the financial services company and an offer for sale (OFS) of 26.88 crore shares by the government.

The net proceeds from the fresh issue will be utilised towards augmenting the capital base to meet future capital requirements and onward lending. The company will not receive any proceeds from the OFS.

IDBI Capital Markets & Securities, BOB Capital Markets, and SBI Capital Markets are the book-running lead managers to the issue while Link Intime India has been appointed as the registrar.

The equity shares of the company are proposed to be listed on the stock exchanges — BSE and NSE.

An enterprise under ministry of new and renewable energy, IREDA is engaged in the financing of renewable energy projects.

The Cabinet Committee on Economic Affairs (CCEA) had in March approved the listing of Ireda through an IPO comprising the sale of a government stake and fresh shares. This decision superseded a 2017 CCEA clearance for an IPO entirely of fresh shares in the company, which is under the Ministry of New & Renewable Energy.

The NBFC recorded an all-time high net profit of Rs 865 crore in fiscal 2023 on lower bad loans. The figures represent a significant growth of 36 percent and 37 percent, respectively, over the preceding financial year 2021-22.

IREDA’s Net Non-Performing Assets (NPAs) or bad loans have reduced to 1.66 percent in FY23 from 3.12 percent in FY22, a significant reduction of 47 percent (in percentage terms) on year-on-year basis.

First Published:Sept 10, 2023 5:01 PM IST