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Centre Approves Listing Of IREDA On Stock Exchanges Through IPO

The IPO will happen by the part sale of Government’s stake in it and to raise funds for IREDA through issue of fresh equity shares

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The Cabinet Committee on Economic Affairs (CCEA) on Friday approved listing of IREDA, a CPSE under Ministry of New & Renewable Energy (MNRE), on the Stock Exchanges through an Initial Public Offer (IPO) by part sale of Government’s stake in it and to raise funds for IREDA through issue of fresh equity shares.  

Centre said that the Department of Investment and Public Asset Management (DIPAM) will drive this listing process.

This decision supersedes earlier CCEA decision taken in June, 2017 for allowing IREDA to issue 13.90 crore fresh equity shares of Rs 10.00 each to the public on book building basis through IPO. “The instant decision has been necessitated due to change in capital structure following infusion of capital to the tune of Rs 1500 crore by the Government in March, 2022,” said the Centre in a statement.

“The Initial Public Offer (IPO) will help in unlocking the value of Government’s investment on one hand and on the other hand will provide an opportunity to the public to acquire stake in the national asset and draw benefits therefrom,” Centre added.

The IPO is expected to help IREDA raise a part of its capital requirement for meeting growth plans without depending on the public exchequer, and improve governance through greater market discipline and transparency arising from listing requirements and disclosures.


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