Renewable Energy

IREDA IPO to be completed by March next year

Amlan Bibhudatta

Notable because

After filing its draft IPO papers recently, the Indian Renewable Energy Development Agency Limited (IREDA) – India’s premier renewable energy non-bank financial company (RE NBFC) – has announced that it plans to publicly sell a 25% stake in the company, no later than March 2024. The agency plans to use the capital from the new issue portion of the share sale for the expansion of its businesses. This is a significant move given that, currently, the scale of capital seems to be an issue for RE deployment. Till now, IREDA has reportedly disbursed over INR 1 trillion towards ~ 22 GW worth of projects.

What to look out for in the months ahead

IREDA’s expansion has been ongoing for the last few years – its loan book reported a 30% CAGR between FY21 and FY23.

To what extent will loan growth exceed the figures recorded in recent years, and will the portfolio mix see significant changes?