About Company

• IREDA is a wholly owned Government of India (“GoI”) enterprise under the administrative control of the Ministry of New and Renewable Energy. Established in 1987, IREDA is a NBFC incorporated to with an objective to provide innovative financing in RE and energy efficiency/ conservation and environmental technologies. IREDA provides a comprehensive range of financial products and related services from project conceptualization to the post-commissioning stage in RE projects and equipment manufacturing. 

• Systemically Important Non-Deposit-taking NBFC: IREDA is registered with the RBI as a Systemically Important Non-Deposit-taking NBFC (a “NBFC-ND-SI”), with Infrastructure Finance Company (“IFC”) status. The company was also conferred with the Mini Ratna (Category I) status in June 2015 by the DPE. Since Fiscal 2021, the company has consistently been rated ‘Excellent’ by the MNRE in course of evaluation of performance in achieving key targets.

• Diversified portfolio of Term Loans Outstanding: The company has financed projects across multiple RE sectors such as solar power, wind power, hydro power, transmission, biomass including bagasse and industrial co-generation, waste-to-energy, ethanol, compressed biogas, hybrid RE, EEC and green-mobility. As of September 30, 2023 , its Term Loans Outstanding, stood at ? 47,514 Cr vs. ? 27,854 Cr in FY2021. 

• Comprehensive suite of financial fund-based and non-fund-based products and services: IREDA provides key fund-based products for RE developers are long-term, medium-term and short-term loans (for projects, manufacturing and equipment financing), top-up loans, bridge loans, takeover financing, and loans against securitization of future cashflows. The company also provide line of credit to other NBFCs for on-lending to RE and EEC projects. In addition, they provide loans to government entities and also provide financing schemes for RE suppliers, manufacturers and contractors.

• Financial Performance: The Company’s Term Loans Outstanding grew to ? 33,783 Cr in FY23 from ? 27,854 Cr in FY21, at CAGR of 30%, while Profit After Tax grew to ? 410.26 Cr from ? 346 Cr, at CAGR of 57.99% during the FY21 to FY23. The company’s Net NPA’s have improved from 5.61% in FY21 to 1.66% as of FY 23.

Strengths

• Track record of growth, geared towards high quality assets and diversified asset book and stable profitability;
• Strategic role in Government of India initiatives in the Renewable Energy sector; 
• Established and trusted brand name operating in a rapidly expanding sector; 
• Digitized process for borrower centricity and operational scalability, with presence across India; 
• Comprehensive data-based credit appraisal process and risk-based pricing, with efficient post-disbursement project monitoring and recovery processes; 
• Access to diversified and cost-effective long-term sources of borrowing with a judicious approach towards asset-liability management; 
• Experienced senior management with in-depth sector expertise and professionally qualified employee base. 

Company Promoters

Company Financials

Indian Renewable Energy Development Agency Limited's revenue increased by 21.18% and profit after tax (PAT) rose by 36.48% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

The Offer comprises the Fresh Issue and the Offer for Sale. The company will not receive any proceeds from the Offer for Sale. Further, the proceeds of the Offer for Sale shall be received by the Promoter Selling Shareholder and will not form part of the Net Proceeds. The company intends to utilize the net proceeds for the following objects:-

(i)Augmenting the capital base to meet future capital requirements and onwardlending.

(ii)The Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, including enhancing the brand image among existing and potential customers and creating a public market for the Equity Shares in India.