IREDA Raises INR 2,005.90 Crore Through QIP to Strengthen Green Financing Capacity

Indian Renewable Energy Development Agency (IREDA) has raised INR 2,005.90 crore through a Qualified Institutions Placement (QIP) to strengthen its finances and support the country’s clean energy expansion.

The capital was raised through the allotment of 12.15 crore equity shares at INR 165.14 per share, including a premium of INR 155.14, reflecting a 5 percent discount to the floor price of INR 173.83. The QIP, which opened on June 5 and closed on June 10, saw strong demand from a broad spectrum of qualified institutional buyers, including insurance firms, commercial banks, and foreign portfolio investors.

Initially targeted at INR 1,500 crore, the issue was oversubscribed by 1.34 times, with the final subscription amount reaching INR 2,005.90 crore. The IREDA Board approved the allotment of shares at its meeting held on June 11.

The funds raised will enhance IREDA’s Tier-I capital and improve its Capital Adequacy Ratio, thereby expanding the company’s lending capacity for renewable energy initiatives.

Commenting on the development, IREDA Chairman and Managing Director Pradip Kumar Das said, “This QIP’s success, coming just months after our IPO in November 2023, highlights the confidence the investor community and the Ministry of New and Renewable Energy have placed in IREDA. The capital infusion will enable us to expand our financing capabilities and support India’s clean energy transition.”

He extended his appreciation to Union Minister Pralhad Joshi, Minister of State Shripad Naik, Secretary MNRE Santosh Kumar Sarangi, DIPAM, and IREDA’s Board of Directors for their consistent support and guidance. IREDA also acknowledged the contributions of its institutional investors and stakeholders, reaffirming its commitment to leading India’s renewable energy financing efforts.