WAPCOS IPO papers by Sep; ECGC, IREDA in FY24 plan, says finance ministry source
Informist, Tuesday, Apr 25, 2023
--Fin min source: Hope to bring WAPCOS, IREDA, ECGC IPOs FY24
--May file final prospectus for WAPCOS IPO by Sep
--Expect IREDA IPO before that of ECGC
By Krity Ambey
NEW DELHI – Government-owned WAPCOS Ltd may file the red herring prospectus for its initial public offering with the Securities and Exchange Board of India by September, a senior finance ministry official said today. The government is also looking to list Indian Renewable Energy Development Agency and export credit provider ECGC Ltd on the bourses in the current fiscal year started April, the official said.
"The draft red herring prospectus is already filed, now we are waiting for them (WAPCOS) to give us the Q4 (Jan-Mar) numbers," the official told Informist.
WAPCOS had in September filed the draft red herring prospectus with SEBI for listing on the bourses. According to the draft prospectus, the issue will be an offer-for-sale of up to 32.5 mln shares.
The company, under the administrative control of the Ministry of Jal Shakti, had posted 28 bln rupees of revenue from operations in 2021-22 (Apr-Mar), up 11.4% and net profit of 691.6 mln rupees, up 14.5%. WAPCOS is a consultancy, and engineering, procurement and construction company operating in the fields of water resources, power and infrastructure.
ECGC LISTING
Discussions for the listing of ECGC are in a very preliminary stage now, the official said. "We have asked the company to give its future plans. After that, we will appoint advisers," the official said.
Asked about the issue, ECGC Chairman and Managing Director M. Senthilnathan told Informist that his company has submitted its five-year business plan to the government. ECGC was looking to file the draft IPO prospectus with SEBI in this quarter ending June but there could be some delay as the government is still holding discussions at their end, the chairman said.
In September 2021, the Union Cabinet had approved listing of ECGC through an IPO. At a press conference after the Cabinet meeting, Minister of Commerce and Industry Piyush Goyal had said that the government aimed to list the company in 2022-23. At the same meeting, the Cabinet had also approved a capital infusion of 44 bln rupees in ECGC over a period of five years.
As per the Budget for 2023-24, the government had infused 11.48 bln rupees in ECGC till 2022-23, and made a token provision of 100,000 rupees for the current fiscal year. Any further infusion of funds will depend on the initial public offering of the company, two commerce ministry officials said.
"Currently, we have enough capital for the functioning of the company till the end of this year," Senthilnathan said.
IREDA LISTING
"For IREDA, the in-principle approval is there, we have asked for bids to appoint advisers," the finance ministry official said. The initial public offer of IREDA may happen before that of ECGC, the official said.
The Cabinet Committee on Economic Affairs had in March approved the company’s initial public offering.
Earlier this month, the government had invited bids to appoint the legal adviser and book running lead manager for the listing and partial disinvestment of its stake in Indian Renewable Energy Development Agency.
In the notice inviting bids, the government said it aims to dilute up to 25% of its stake in IREDA. "A part of the public offering may be reserved for employees of IREDA, as per Securities and Exchange Board of India rules."
The last date for submission of bids for legal adviser as well as for book running lead manager for the non-banking financial company is Apr 28. The bids will be opened on May 1.
IREDA, wholly owned by the central government, was incorporated in 1987 and is engaged in financing of renewable energy and energy efficiency projects in India.
The government aims to raise 510 bln rupees through disinvestment of stake in public sector undertakings in the current fiscal year. End
