State-owned Indian Renewable Energy Development Agency (IREDA) has filed its Draft Red Herring prospectus (DRHP) with capital market regulator SEBI to raise funds through for its initial public offering (IPO).

It is the first IPO by a public sector enterprise after Life Insurance Corporation's public issue in May last year.

The IPO with a face value of Rs 10 consists of fresh issue of up to 403.16 million equity shares and an offer for sale (OFS) of up to 268.78 million equity shares by the President of India, acting through the Ministry of New and Renewable Energy, Government of India (“Promoter Selling Shareholders”). The offer includes a reservation of up to for subscription by eligible employees.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

The DRHP the proceeds from the Fresh Issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.

IREDA has an impressive track record spanning over 36 years in the field of fostering, advancing, and providing financial support for fresh and sustainable energy (RE) projects, as well as energy efficiency and conservation (EEC) initiatives.

IREDA stands as India's largest dedicated green financing non-banking financial company (NBFC). It made history by being the pioneer issuer of the inaugural debt security known as the "green masala bond" in India, which is listed on the IFSC (International Financial Services Centre) exchange.

As of June 30, 2023, its portfolio of outstanding term loans stood at Rs. 47,206.66 crore, reflecting its diverse investment ventures. It has a geographically diversified portfolio, with Term Loans Outstanding across 23 States and five Union Territories across India, as of June 30, 2023 and has four strategically located branches in Mumbai, Hyderabad, Chennai and Bhubaneshwar to maximize geographical range in terms of territory.

During FY 2023 and the first three months ending June 30, 2023, IREDA sanctioned total loans amounting to Rs. 32,586.61 crore and Rs. 1,892.45 crore, respectively. Notably, its debt instruments have been rated India Ratings (AAA Stable), ICRA (AAA Stable), and Acuite (AAA Stable).

IDBI Capital Markets & Securities Limited, BOB Capital Markets Limited, and SBI Capital Markets Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.