Three merchant bankers – BOB Capital, IDBI Capital and SBI Capital – are in the running to lead the Indian Renewable Energy Development Agency (IREDA) initial public offering (IPO). Separately, Saraf and Partners, Luthra & Luthra and Crawford Bayley & Company are all in contention for the role of counsel for the IPO.
The merchant bankers and law firms made their presentations to the Department of Investments and Public Wealth Management on Wednesday. The IPO, expected in FY24, will likely include a 10 percent stake sale by the government and a 15 percent issuance of new shares by the renewable energy project financier to fund its business growth.
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Listing unlisted state-owned companies is a priority for the center to unlock the value of these companies and also improve corporate governance.
On March 17, the Cabinet Committee on Economic Affairs (CCEA) approved IREDA’s IPO. This decision superseded the previous CCEA decision of June 2017 which allowed IREDA to issue 139 million new shares at Rs. 10 rupees each on a book building basis to the public through an IPO. The immediate decision was required due to a change in the capital structure following a Rs.1,500 crore capital injection by the government in March 2022.
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IREDA is currently a wholly owned Indian company established in 1987. The Company is engaged in the financing of renewable energy (RE) and energy efficiency (EE) projects in India.
It is registered as a non-bank financial company with the Reserve Bank of India.
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