IREDA IPO likely in September – EQ Mag
IREDA IPO: The Government of India (GoI) is planning to file Draft Red Herring Prospectus (DRHP)for the launch of initial public offering (IPO) of state-owned Indian Renewable Energy Development Agency (IREDA) by September 2023. Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey told media that GoI has already appointed merchant bankers to proceed with valuations. The DIPAM Secretary said that the DRHP for IREDA IPO launch will be filed at market regulator in next three to four months i.e. by September 2023.
DIPAM on upcoming IPO
Informing about the developments in regard to IREDA IPO, DIPAM Secretary Tuhin Kanta Pandey told PTI, “We have appointed the merchant bankers and they will proceed with valuation. We should be able to file the DRHP in 3-4 months, could be by September.”
IREDA, which deals in financing of renewable energy and energy efficiency projects, is a public sector enterprises under Ministry of New and Renewable Energy (MNRE). To provide liquidity to the PSE, GoI infused around ₹1,500 crore capital in March 2022 in this Non Banking Finance Company (NBFC).
The NBFC posted an all-time high net profit of ₹865 crore in the financial year 2022-23. IREDA reported an all-time high annual Profit After Tax (PAT) of ₹865 crore and Profit Before Tax (PBT) of ₹1,139 crore in the financial year 2022-23. The figures represent a significant growth of 36 per cent and 37 per cent, respectively, over the preceding financial year 2021-22. The state-owned NBFC’s Net Non-Performing Assets (NPAs) or bad loans have reduced to 1.66 per cent in FY23 from 3.12 per cent in FY22, a significant reduction of 47 per cent (in percentage terms) on year on year basis.
In March 2023, the Cabinet Committee on Economic Affairs (CCEA) approved the listing of IREDA through an initial public offer (IPO) to part sale the government’s stake and raise funds for IREDA through the issue of fresh equity shares. However, the GoI kick-started the IREDA IPO process in April 2023 when it came out with an initial share sale offer for up to 25 per cent stake in IREDA.
The paid-up capital of IREDA as on March 31 was ₹2,284.60 crore. Net-worth of IREDA was ₹5,268.11 crore and the profit after Tax (PAT) was ₹633.53 crore.
Source: PTI
