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Key Points

IREDA has successfully raised Rs 2,006 crore through a Qualified Institutions Placement (QIP), reinforcing its position as India's leading green financing NBFC. The issue was oversubscribed by 1.34 times, reflecting strong investor confidence in renewable energy growth. Chairman Pradip Kumar Das stated the funds will accelerate India's transition to sustainable energy. The company also reported a 49% jump in Q4 net profit, showcasing robust financial performance.

Key Points: IREDA Raises Rs 2,006 Cr via QIP to Boost Green Energy Financing

  • IREDA's QIP oversubscribed 1.34x with Rs 2,006 crore raised
  • Funds to strengthen capital adequacy for green projects
  • Issue priced at Rs 165.14 per share with 5% discount
  • Q4 net profit jumps 49% to Rs 502 crore
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IREDA raises Rs 2,006 cr via QIP to boost green financing

IREDA secures Rs 2,006 crore through QIP, reinforcing India's renewable energy push with strong investor confidence.

"“This capital infusion will empower us to scale up financing for renewable energy projects.” – Pradip Kumar Das, IREDA CMD"

New Delhi, June 11

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.

- IANS

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Reader Comments

R
Rahul K.
This is fantastic news for India's renewable energy sector! 💚 With IREDA getting stronger financially, we can expect more solar and wind projects across rural India. The oversubscription shows global confidence in our green energy potential. Hope this translates to cheaper clean energy for common people soon!
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Priya M.
While the numbers look impressive, I hope IREDA ensures transparency in allocating these funds. We've seen many green projects get delayed due to bureaucratic hurdles. The government should create a public dashboard showing exactly which projects get funded and their progress.
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Arjun S.
️As someone working in solar energy sector, this funding boost is much needed! But IREDA should focus more on decentralized renewable solutions for villages. Big projects get attention, but small solar installations can transform rural livelihoods. #PowerToThePeople
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Neha T.
The 49% profit jump shows renewable energy is not just good for environment but also makes business sense. More Indian companies should invest in this sector. Imagine if even 10% of corporate profits went into green energy - we could lead the world!
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Vikram J.
Good development, but why only institutional investors? Retail investors should also get opportunities to invest in such nation-building initiatives through smaller ticket sizes. Make green investing accessible to all Indians!
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Smita R.
Hope part of this funding goes into R&D for better energy storage solutions. Solar/wind are great but we need Indian-made battery tech to make renewable energy truly reliable. China dominates this space - time for Atmanirbhar solutions!

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