The state-owned Indian Renewable Energy Development Agency (IREDA) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), marking the first IPO by a public sector enterprise since Life Insurance Corporation's public issue in May last year. This was announced on Monday.
The IPO consists of a fresh issue of up to 403.16 million equity shares and an offer for sale (OFS) of up to 268.78 million equity shares by the President of India, acting through the Ministry of New and Renewable Energy, Government of India. The face value of the IPO is Rs 10 per share. The allocation of the offer will be done through the Book Building Process, with not more than 50% available for Qualified Institutional Buyers, not less than 15% for Non-Institutional Bidders, and not less than 35% for Retail Individual Bidders.
The proceeds from the Fresh Issue will be used to augment IREDA's capital base to meet future capital requirements and onward lending. IREDA, a Systemically Important Non-Deposit-taking Non-Banking Finance Company with Infrastructure Finance Company status, has an impressive track record spanning over 36 years in fostering and providing financial support for renewable energy projects and energy efficiency initiatives.
As of June 30, 2023, IREDA's portfolio of outstanding term loans stood at ₹47,206.66 crore ($6.3 billion), reflecting its diverse investment ventures across 23 states and five union territories in India. During FY 2023 and the first three months ending June 30, 2023, IREDA sanctioned total loans amounting to ₹32,586.61 crore and ₹1,892.45 crore, respectively.
For fiscal year 2023, the standalone revenue from operations increased by 21.75% to Rs 3,481.97 crore, primarily due to the growth of its Term Loans Outstanding. Net profit increased by 36.48% from Rs 633.53 crore in fiscal 2022 to Rs 864.63 crore in fiscal 2023. For the three months ended June 30, 2023, revenue from operations stood at Rs 1,143.21 crore, and profit after tax was Rs 294.58 crore.
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