The Indian Renewable Energy Development Agency (IREDA) has received a green signal from the Securities and Exchange Board of India (SEBI) for the launch of its Initial Public Offering (IPO).

Now, the IREDA can pursue its plans to issue 139 million equity shares as part of IPO.

“We believe that the listing of our equity shares will enhance our visibility and brand name among existing and potential customers,” a report by the Press Trust of India quoted an IREDA official as saying.

As reported previously by Mercom, this IPO will help IREDA increase its equity base by creating a larger debt resource for lending. The shares will be issued at a base price of ₹10 (~$0.16) each for purchase by the public on a book-building basis.

The agency will issue shares to retail investors and its employees at a discount of 5 percent on the issue price of each share. The agency has reserved 695,000 equity shares for its employees.

YES Securities (India) Limited, Elara Capital (India) Private Limited, IDBI Capital Markets & Securities Limited, SBI Capital Markets Limited, and Link Intime India Private Limited will be managing IREDA’s IPO. The shares will be traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

IREDA filed a draft red herring prospectus with the SEBI in December 2017. IREDA is the only renewable energy specific financing company in India and the government hopes that by increasing its equity base, it will enable IREDA to raise more debt to fund renewable energy projects. The move will also make the agency more visible in domestic and international markets.

The bid for an IPO by IREDA comes in the light of IREDA’s borrowing target being slashed by close to 34-35 percent.

Mercom had previously reported that the Cabinet Committee on Economic Affairs had approved the launch of IREDA’s IPO on June 7, 2017.

Image credit: Investopedia