IREDA raises ₹2,000 crore to boost green energy

New Delhi

The Indian Renewable Energy Development Agency (IREDA), a state-owned company, has raised over ₹2,000 crore through a Qualified Institutions Placement (QIP), the company announced on Wednesday.

The QIP was open from June 5 to June 10 and saw strong interest from both Indian and foreign investors. These included insurance firms, banks, and foreign portfolio investors. The issue was oversubscribed, receiving ₹2,005.90 crore in bids compared to the base target of ₹1,500 crore, resulting in a subscription rate of 1.34 times.

IREDA issued 12.15 crore equity shares at ₹165.14 per share, which includes a premium of ₹155.14 above the ₹10 face value. The issue price was set at a 5% discount to the floor price of ₹173.83 per share.

The raised capital will help improve IREDA’s Tier-I capital and overall capital adequacy ratio. This, in turn, will increase its capacity to fund renewable energy projects across India.

IREDA Chairman and Managing Director Pradip Kumar Das said the QIP’s success, just months after their November 2023 IPO, shows the growing confidence of investors and the Ministry of New and Renewable Energy (MNRE) in IREDA’s role.

IREDA, operating under the MNRE, focuses on financing and supporting renewable energy and energy efficiency projects nationwide. This fresh capital infusion will help IREDA play a bigger role in India’s push for clean and sustainable energy.