IREDA Secures ₹2,005.90 Crore Through Successful QIP Initiative

IREDA's Successful Fundraising Effort

New Delhi, June 11: The Indian Renewable Energy Development Agency Ltd. (IREDA) has successfully raised ₹2,005.90 crore via a Qualified Institutions Placement (QIP).

This capital was generated by issuing 12.15 crore equity shares priced at ₹165.14 each, which includes a premium of ₹155.14 over the nominal value of ₹10, as stated in an official announcement made on Wednesday.

The issue price of ₹165.14 represents a 5% discount compared to the floor price of ₹173.83 per equity share.

Initiated on June 5, the QIP concluded on June 10, garnering a positive response from a wide array of domestic and international Qualified Institutional Buyers (QIBs), including insurance firms, scheduled commercial banks, and Foreign Portfolio Investors.

During a board meeting held on Wednesday, the allotment of equity shares to qualified QIBs was approved.

The QIP was oversubscribed, with bids totaling ₹2,005.90 crore against a base issue size of ₹1,500 crore, achieving a subscription rate of 1.34 times.

The funds raised will bolster IREDA's Tier-I capital and overall Capital Adequacy Ratio (CAR), enhancing its ability to support the growing renewable energy sector in India.

Pradip Kumar Das, Chairman & Managing Director of IREDA, remarked: “The swift completion of this QIP, shortly after our IPO in November 2023, underscores the confidence that the investor community and the Ministry of New and Renewable Energy have in IREDA.

This capital infusion will enable us to expand our financing operations, facilitating increased investments in renewable energy projects and propelling India’s shift towards a sustainable energy future.”

IREDA has reported a significant 49% increase in net profit, reaching ₹502 crore for the January-March quarter of the financial year 2024-25, compared to ₹337 crore in the same period last year.

The largest pure-play green financing NBFC in the country recorded revenues of ₹1,392 crore in the fourth quarter, marking a 37.7% rise from ₹1,916 crore in Q4 of FY 2023-24.

The government-owned NBFC's loan approvals for the fourth quarter saw a 27% increase, totaling ₹47,453 crore, while loan disbursements rose by 20% to ₹30,168 crore.