The Cabinet on Wednesday approved the initial public offer of Indian Renewable Energy Development Agency, enabling it to mobilise funds for the clean energy sector.
"The IPO proposal of IREDA was discussed and approved in the meeting of the Cabinet Cabinet Committee on Economic Affairs (CCEA) held today," a source said.
Under the listing proposal, IREDA will issue fresh 13.90 crore shares, increasing the paid up share capital of the company from Rs.784 crore to Rs.923 crore. At present the company has 78.46 crore equity shares.
The quantum of funds to be raised through the IPO will be ascertained later as the shares will be issued at premium through the book building process, which will lead to price discovery.
Following the CCEA approval, it will take 180 days to list IREDA, which is state-owned non-banking financial firm.
IREDA has plans to disburse Rs.13,000 crore for clean energy projects this fiscal and vying for around 20 per cent of the loan market share for such projects.
With the government aiming at adding around 15 to 16 GW of clean energy projects, including solar and wind, there would be total credit market size of around Rs.65,000 crore this fiscal.
IREDA has sanctioned around Rs.37,000 crore of credit for clean energy projects in the country so far and has released around Rs.28,000 crore to developers, which aids generation capacity of around 7,000 MW.