With approval now given from the cabinet, IREDA will be able to move forward with its IPO, through which it hopes to raise significant debt resources. The money raised is planned to go towards project funding, as the agency seeks to keep India on track to meet its lofty renewable energy targets.
Under the terms of the CCEA approval, IREDA is now able to issue 13,90,00,000 equity shares to the public at the rate of INR 10 per share. The shares may be issued to retail investors and IREDA employees at a discount of 5% on the issue price of each share, with a cap of 0.5% equity for public sector (CPSE) employees and not less than 35% to be allocated to retail investors.
In seeking these investments, IREDA says is it looking to unlock its true value, and increase its visibility in domestic and international financial markets, as well as to raise funds to leverage loan financing for renewable energy projects.
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Recently, IREDA has focused on efforts to bring better financial stability to the Indian renewable energy sector, announcing in September 2016 that it would support the country’s green bond market through guaranteeing up to 25% of a total bond issuance.
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