IREDA board approves plan to raise up to ₹5,000 crore via QIP, shares down 1.7%

State-owned Indian Renewable Energy Development Agency (IREDA) on Thursday said its board has approved a plan to raise funds of up to ₹5,000 crore through a qualified institutions placement (QIP).

The decision was taken during a board meeting held on Thursday, the company said in a regulatory filing.

“Board of the Company, at its meeting held today, i.e., Thursday, January 23, 2025, has considered and approved the raising of funds by issue of equity shares through a qualified institutions placement (QIP), in one or more tranches, under applicable laws, for an amount aggregating up to ₹5,000 crore,” the filing stated.

IREDA stock ended 1.71% down on the NSE at ₹196.84 apiece on Thursday, January 23. The market capitalisation of the company stands at ₹52,693.63 crore.

The fundraise was approved in one or more tranches provided that the shareholding of the President of India, acting through the MNRE does not dilute more than 7% of the post-issue paid-up equity share capital of the company, the filing added.

The financial resources will aid the growing demand for green energy financing in the country, IREDA said in a statement. The issue will proceed once necessary approvals are obtained from shareholders and regulatory authorities.

"This fundraising initiative through QIP reflects IREDA's steadfast commitment to strengthening India's renewable energy ecosystem. It will enable us to scale up financial support for clean energy projects and further reinforce our leadership in the sector," Pradip Kumar Das, Chairman and Managing Director of IREDA, said.

More about IREDA

Established in 1987, the Indian Renewable Energy Development Agency Ltd (IREDA) is a non-banking financial institution under the Ministry of New and Renewable Energy that provides funding for renewable energy projects in the country.

For the third quarter of the current fiscal (Q3 FY25), the company reported a 26.8% year-on-year (YoY) jump in its net profit at ₹425.4 crore against ₹335.5 crore reported in the year-ago period. Its net interest income (NII) grew 39% YoY to ₹622.3 crore, up from ₹448.1 crore in Q3 FY24.