Govt invites bids for Ireda IPO RTA
Efforts on engagement of a registrar and share transfer agent for 25% stake dilution in Miniratna
Concorde IPO: For medium to longer-term investment
New Delhi: Continuing the process of disinvestment in Indian Renewable Energy Development Agency (Ireda), the government has now invited bids for the engagement of a registrar and share transfer agent (RTA).
The Department of Investment and Public Asset Management (Dipam) is already working for the engagement of book running lead managers or BRLMs and the legal adviser for Ireda disinvestment.
The government intends to offload 25 per cent of its equity in clean energy lender by way of the initial public offering (IPO), official sources told Bizz Buzz, adding that the IPO would come out this fiscal.
Ireda, a wholly-owned company by the government, enjoys the Mini-Ratna status as a Central public-sector enterprise (CPSE). Incorporated in 1987 under the Companies Act, it is under the administrative control of the Ministry of New and Renewable Energy (MNRE). It is engaged in financing of renewable energy (RE) and energy efficiency (EE) projects in the country.
Registered as a non-banking finance company or NBFC with the Reserve Bank of India (RBI), Ireda has emerged as the country’s leading financing company for RE sector projects.
The paid-up capital of Ireda, as on March 3, 2022, was Rs2,284.6 crore, comprising 228.46 crore equity shares of face value of Rs10 each. The net worth of Ireda was Rs5,268.11 crore and profit after tax Rs 633.53 crore.
The RTA will assist the government in the entire process of the IPO, including the issuance of dematerialized paid-up equity shares. It would help the government in executing corporate actions with NSDL and CDSL, the depositories.
The RTA will also prepare the anchor confirmation of allocation notes (CAN) post-anchor allocation in case the government undertakes an issue to anchor investors. Anchor investors buy the share at a fixed price as a confidence-building exercise among other investors and increase the demand of the equity on the block. The RTA will enter into a share escrow agreement with the government.
