The Indian Renewable Energy Development Agency (IREDA) has announced that it will soon float an initial public offering (IPO) of fresh equity shares and issue green bonds in domestic and international markets to mobilize capital for lending.
According to Pradip Kumar Das, IREDA’s Chairman and Managing Director, IREDA is fully geared to get equity listed although it is a debt-listed company.
IREDA also plans to set up an alternate investment fund (AIF) to tap large institutional investors like debt funds, pension funds, insurance funds, and environmental, social, and governance (ESG) funds. The AIF will help IREDA finance new projects of borrowers who are close to the exposure limit.
The agency is also planning asset-based securitization by issuing ‘pass-through certificates.’
Addressing the shareholders during the annual general meeting, Das said that IREDA had completed the financial year 2020-21 with the second highest loan disbursements of ₹88.27 billion (~$1.19 billion) since inception. It had also earned the highest ever profit before tax of ₹5.69 billion (~$76.76 million) with an increase of 136.20% over ₹2.41 billion ($32.5 million) in the previous year.”
The agency registered a net reduction in non-performing assets from 7.18% in the previous year to 5.61% ending FY 2020-21, a decrease of 22%.
Das said, “IREDA is geared up towards a five-fold growth in the loan book from ₹280 billion (3.77) in March 2021 to ₹1.35 trillion (~$18.21 billion) in March 2026.”
IREDA issues tenders for asset valuation
IREDA has also issued tenders to appoint valuers to determine fair market and other values of assets under its loan portfolios in Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. The last date for submission of bids is October 13, 2021.
The broad scope of work includes conducting the valuation of land and buildings, plant and machinery, capital work in progress, inventory, financial assets where applicable, and other such assets financed by IREDA or available to IREDA as guarantee or collaterals.
The tender is open only to valuers or valuer entities, companies or partnership firms, limited liability partnerships, proprietary concerns, or individuals registered with the Insolvency and Bankruptcy Board of India (IBBI).
In May, IREDA invited bids to set up 10 GW of high-efficiency solar module manufacturing capacities. The tender received a strong response from the bidders and was oversubscribed by 5.48 times. The bidders quoted a total capacity of 54.8 GW for polysilicon, ingot-wafer, cell, and module manufacturing.
Mercom is hosting a virtual conference, “Mercom Solar Forum 2021,” on October 21. The forum has an exclusive session, “Moving Towards a Domestic Manufacturing Base With Sustainable Demand.” The discussion will revolve around the feasibility of the domestic manufacturing initiative, market opportunity, and the plans of stakeholders to establish a market within the country and export opportunities. Companies with manufacturing plans will talk about the growth forecast and investments.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.