The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the initial public offering (IPO) of Indian Renewable Energy Development Agency Ltd.

It also approved the issue of 13.90 crore fresh equity shares of IREDA of ₹10 each to the public on a book-building basis through the IPO, an official statement read.

BusinessLine had reported on March 24 that IREDA was targeting to hit the bourses in the third quarter of FY18. The IPO process is expected to be completed within six months from the date of approval by the CCEA.

IREDA will also issue shares to retail investors and its employees at a discount of 5 per cent on the issue price of each equity share on a book-building basis. This will come with a cap of 0.5 per cent on equity post issue for CPSE employees.

The allocation to retail investors in the net offer will not be less than 35 per cent, as per the SEBI Issue of Capital and Disclosure Requirements (ICDR), 2009.

The number of shares proposed to be issued to employees and retail investors will be finalised in consultation with the lead managers and as per SEBI regulations, the statement added.

IREDA’s loan sanctions grew to ₹7,806 crore in FY16 from ₹826 crore in FY08, at a CAGR of 32 per cent, and are expected to cross ₹10,000 crore in FY17.

The growth is also reflected in the profitability of the company, with profit after tax increasing to ₹298.04 crore in FY16 from ₹47.96 crore in FY08. The company maintains a substantial share of the renewable energy financing market.