IREDA raises ₹2,006 cr via QIP

The Indian Renewable Energy Development Agency Ltd. (IREDA) has raised ₹2,005.90 crore through a Qualified Institutions Placement (QIP), aimed at boosting its green financing capabilities and strengthening its capital base.

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The funds were raised by issuing 12.15 crore equity shares at ₹165.14 each, including a premium of ₹155.14 over the face value of ₹10. The issue price reflected a 5% discount to the floor price of ₹173.83 per share. The QIP, launched on June 5 and closed on June 10, drew robust interest from a wide range of qualified institutional buyers (QIBs), both domestic and international. These included insurance companies, scheduled commercial banks, and foreign portfolio investors, according to a statement.

IREDA’s Board approved the allotment of equity shares to eligible QIBs during a meeting held earlier today. The offering was oversubscribed, achieving a subscription of 1.34 times against a base issue size of ₹1,500 crore.

The proceeds will strengthen IREDA’s Tier-I capital and enhance its Capital Adequacy Ratio (CAR), enabling the company to expand its role in financing India’s growing renewable energy sector.

“The successful completion of this QIP shortly after our IPO in November 2023 demonstrates the trust placed in IREDA by the investor community and the Ministry of New & Renewable Energy. This capital infusion will enable us to scale up renewable energy investments and support India’s transition to a sustainable energy future,” Pradip Kumar Das, Chairman & Managing Director of IREDA, said.

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