Indian non-bank lender IREDA files for IPO

BENGALURU, Sept 11 (Reuters) - State-owned non-banking financial company, Indian Renewable Energy Development Agency (IREDA), has filed for an initial public offering (IPO) with the countrys markets regulator, as per draft papers.

This will be the first IPO filed by a public sector enterprise since Life Insurance Corps subdued listing in May 2022.

Established in 1987, IREDA provides financial assistance for setting up projects related to new and renewable sources of energy and energy conservation.

The IPO will comprise a fresh issue of up to 403.16 million shares, with an offer for sale of up to 268.78 million shares by the Indian government, as per the draft prospectus dated Sept. 7.

IREDA specified neither the size of the offering nor the price band in the prospectus but said the proceeds from the fresh issue would be used to lend and as capital.

IREDA posted a 36.5% year-on-year rise in profit after tax to 8.65 billion rupees ($104.22 million) in fiscal 2023 while revenue rose nearly 22% to 34.82 billion rupees.

The portfolio of outstanding term loans stood at 472.07 billion rupees as of June 30.

IDBI Capital Markets & Securities, BOB Capital Markets and SBI Capital Markets are book-running lead managers for IREDAs IPO.

($1 = 82.9977 Indian rupees)