Green Energy Financer IREDA Goes Public

Pradip Kumar Das

Green Energy Financer IREDA Goes Public

IPO Opens On Tuesday @Price Band Of ₹30 To ₹32

IREDA finances new and renewable energy projects, energy efficiency and conservation projects.

MUMBAI, Nov 16 (The CONNECT) - Public Financial Institution Indian Renewable Energy Development Agency (IREDA) Limited has fixed the price band at ₹30 to ₹32 per equity share for its initial public offering that will be open from Tuesday to Thursday next. 

Investors can bid for a minimum of 460 equity shares and in multiples of 460, thereafter.

IREDA is registered as a Systemically Important Non-Deposit-taking Non-Banking Finance Company with Infrastructure Finance Company status.

The IPO comprises of fresh issuance of 403,164,706 equity shares  and an Offer for Sale (OFS) of 268,776,471  shares.  

IREDA is a financial institution with over 36 years of experience in promoting, developing and extending financial assistance for new and renewable energy projects, and energy efficiency and conservation projects.

It provides a comprehensive range of financial products and related services, from project conceptualisation to post-commissioning, for renewable energy projects and other value chain activities, such as equipment manufacturing and transmission, Pradip Kumar Das, CMD of IREDA, said.

IREDA is also India's largest pure-play green financing NBFC in India. It is the issuer of first debt security (green masala bond) in India listed on IFSC exchange. IREDA is the first financial institution in India to raise green masala bonds and is among the first financial institution to raise global funds for climate financing from DFIs / multilaterals in India.

It has a geographically diversified portfolio, with Term Loans Outstanding across 23 States and five Union Territories across India, as of September 30, 2023, and has four strategically located branches in Mumbai, Hyderabad, Chennai, and Bhubaneshwar to maximize geographical range in terms of territory.

IREDA also extends lines of credit to other non-banking financial companies (NBFCs) for lending to RE and EEC projects. Additionally, it offers loans to government entities and financing schemes for RE suppliers, manufacturers, and contractors, while non-fund-based products comprise instruments like letters of comfort, letters of undertaking, payment on order instruments, and guarantee assistance schemes. Furthermore, it provides consultancy services on techno-commercial issues related to the RE sector. As of September 30, 2023, it had a diversified portfolio of term loan outstanding amounting to Rs 475,144.8 million

For the fiscal year 2023, the company’s net interest income increased to Rs 13,23.7 crores against Rs 11,28 crore a year ago. Net profit increased from Rs 633.5 crore in fiscal 2022 to Rs 864.6 crore  in fiscal 2023. Its Capital to Risk-weighted Asset Ratio (CRAR) stood at 18.82% for Fiscal 2023 and 20.92% for the six months ended September 30, 2023,

IDBI Capital Markets & Securities Limited, BOB Capital Markets Limited, and SBI Capital Markets Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

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