IREDA raises Rs 2,006 crore via QIP to boost green financing

Indian Renewable Energy Development Agency Ltd. (IREDA) has successfully raised Rs 2,005.90 crore through Qualified Institutions Placement (QIP).

The capital was mobilised by issuing 12.15 crore equity shares at a price of Rs 165.14 per share, which includes a premium of Rs 155.14 per share over the face value of Rs 10, according to an official statement issued on Wednesday.

The issue price of Rs 165.14 reflects a discount of 5 per cent to the floor price of Rs 173.83 per equity share.

Launched on June 5 this year, the QIP issue closed on June 10, receiving an encouraging response from a diverse set of both domestic and foreign Qualified Institutional Buyers (QIBs) including insurance companies, scheduled commercial banks and Foreign Portfolio Investors.

The Board has approved allotment of equity shares to eligible QIBs at its meeting held on Wednesday.

The QIP issue was oversubscribed with bids amounting to Rs 2,005.90 crore against the base issue size of Rs 1,500 crore, achieving a subscription of 1.34 times.

The capital raised through this successful issue will further strengthen IREDA’s Tier-I capital and overall Capital Adequacy Ratio (CAR), enhancing the company’s capacity to support the expanding renewable energy sector in India.

Pradip Kumar Das, Chairman & Managing Director, IREDA, said: “The successful completion of this QIP in a short span after our IPO in November 2023 is a testament to the trust and confidence the investor community and the Ministry of New and Renewable Energy have reposed in IREDA.

“This capital infusion will empower us to scale up our financing activities, enabling greater investments in renewable energy projects and accelerating India’s transition towards a greener and sustainable energy future.”

IREDA has recorded a robust 49 per cent jump in net profit to Rs 502 crore for the January-March quarter of financial year 2024-25 compared to Rs 337 crore in the same quarter of the previous fiscal year.

The country’s largest pure-play green financing NBFC recorded a revenue of Rs 1,392 crore during the fourth quarter which represents a 37.7 per cent increase from Rs 1,916 crore in the Q4 of FY 2023-24.

The Government-owned NBFC’s loan sanctions for the fourth quarter recorded a 27 per cent rise to Rs 47,453 crore while loan disbursements for the quarter rose 20 per cent to Rs 30,168 crore.