Govt approves listing of IREDA by selling part stake
The Indian Renewable Energy Development Agency (IREDA) is poised to list on the stock market after the Indian government approved a plan to sell its shareholding in the company through an IPO (IPO). The Department of Investment and Public Asset Management(DIPAM) will oversee the procedure, which was first authorized in 2017. (DIPAM). The government gave $205 million to IREDA last year to increase its net worth and give more funding. This measure contributes to the government’s objective of installing 500 GW of renewable energy capacity by the year 2030.
The IPO should increase the value of the government’s ownership in the business while giving investors a chance to buy shares. By becoming public, IREDA will be able to raise money for its expansion plans without relying on government assistance. According to a statement from the government, more market discipline and transparency brought on by listing requirements and disclosures will strengthen governance. IREDA is an Indian government-owned mini-ratna CPSE that finances energy-saving and renewable energy projects. It is listed with the Reserve Bank of India as a non-banking financial institution.
IREDA recorded a profit of $27.4 million for the December quarter, an increase of 87% over the same time last year. This was mostly brought on by higher income, which rose 17% to $118.3 million from $100.3 million in the same period the year prior. The Indian government’s approval of the IREDA IPO is viewed as a step in the right direction toward accomplishing its objective of giving the nation a cleaner and more sustainable energy future. IREDA will be essential in helping India meet its lofty green energy goals as one of the main participants in financing renewable energy projects there.
The company’s visibility is anticipated to increase as a result of the listing process, which will also increase market discipline and transparency. Becoming public will also assist IREDA in varying its funding sources, which will be essential in the long run. In conclusion, the Indian government’s choice to authorize IREDA’s IPO is a wise one for the nation’s renewable energy industry. By giving the company the chance to acquire money through a public listing, the government not only helps the company realize its full potential but also ensures that it has the funding it needs to promote growth and accomplish its objectives.