Winning Bizness Desk

Mumbai. The government is preparing to enter the capital market once again. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the IPO of IREDA, a company under the Ministry of New and Renewable Energy (MNRE). The government has a stake in this company, which finances renewable energy and energy efficiency projects. The government will help generate funds for the Indian Renewable Energy Development Agency (IREDA) by issuing new equity shares. The Department of Investment and Public Asset Management (DIPAM) will carry out the listing process. According to the report, IREDA will enter the capital market in the coming financial year (2023-24).

IPO will help unlock the investment

The IPO will help unlock the value of the government's investment and give the public the leverage to own a stake in national assets and earn from them. In addition, it will help IREDA to raise a part of its capital requirement to meet development plans without depending on the exchequer. IREDA is presently a Mini-Ratna category company wholly owned by the Government of India, incorporated in 1987 and is engaged in financing Renewable Energy (RE) and Energy Efficiency (EE) projects in India. It is registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC).