IREDA to Set Up Funds While IPO Is in the Works

The state-controlled Indian Renewable Energy Development Agency (IREDA) is already planning its listing on bourses. On Tuesday, 28 September, the company announced the setting up of an alternative investment fund (AIF) to monitor insurance funds, pension funds, and ESG (environmental, social, and governmental) funds.

Let us find out more about the topic!

IREDA IPO and AIF – All You Need to Know

IREDA plans to come out with its IPO to issue green bonds in the domestic and international markets. It looks forward to gathering capital for future lending.

This IPO by one of the pioneers of green energy space comes with the country’s announcement to target 450 gigawatts of renewable energy by the year 2030. This announcement will require heavy funding.

Other competitors of IREDA, like Power Finance Corp. and REC, are already listed on stock exchanges.

The plan of this share sale comes after the state-owned NTPC went ahead with groundwork related to holding initial shares sales of NTPC Renewable Energy Ltd and NTPC Vidyut Vyapar Nigam Ltd. Regarding this, merchant bankers will make preliminary presentations. Moreover, NTPC REL and NTPC VVNL are said to be among the first energy firms to get listings on domestic bourses.

Further, IREDA is also pacing for five-fold growth in its loan book. It plans to reach Rs. 1.35 lakh crores by March 2026 from the current amount of Rs. 28,000 crores.

This state-owned company also plans to raise its revenue per employee to Rs. 55 crores by FY2026 from Rs. 17 crores, its current revenue per employee.

Further commenting on this situation, the chairman and managing director of IREDA made a statement regarding the company’s current position in the Indian market. He said that the company is currently debt listed. However, it is in full preparation for its equity listing.

Conduction of Training Program on the ‘IPO Process’

IREDA’s excitement on IPO launch is visible through its training program conducted virtually between 17 July and 7 August 2021.

This training program consisted of imparting information regarding its IPO process and the Securities and Exchange Board in India. The overall structure of this training program was built uniquely so that all participating officers could enhance their skills and utilise those skills for the IPO’s organisational development.

CMD of IREDA, viewing this training program, says that re-skilling or up-skilling is an excellent way for professionals looking for a career growth trajectory.

Public listed companies have to experience a lot of transparency, scrutiny, and Government’s involvement. Therefore, the company conducted this particular training to facilitate the company’s employees to complete most of the IPO process.

Bottom Line

IREDA is following a path of growth with its major decisions. The company has also invited bids to set up its solar manufacturing units. With these huge announcements, the company poses to impress analysts while it projects near term growth prospects.

Frequently Asked Questions

1. What is the minimum capacity of the solar manufacturing unit?

The minimum capacity of the manufacturing unit is 1 GW.

2. How much loan disbursements did IREDA make in 2020-21?

Despite the pandemic, IREDA completed its second-highest loan disbursement amounting to Rs. 8827 crores for the FY 2020-21.

3. What is the face value of IREDA shares?

The face value of IREDA shares is Rs. 10 per share.