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Indian Renewable Energy Development Agency (IREDA), a state-owned financial institution under the Ministry of New and Renewable Energy, has successfully raised over INR 2,000 crore through a Qualified Institutional Placement (QIP). The issue was open for subscription from domestic and foreign institutional investors, including banks, insurers, and foreign portfolio investors, and received bids worth INR 2,005.90 crore, overshooting the base size of INR 1,500 crore. The capital raised will boost IREDA's tier-I capital and improve its capital adequacy ratio, enhancing its ability to fund renewable energy initiatives nationwide.
State-owned Indian Renewable Energy Development Agency (IREDA) has secured more than INR 2,000 crore through a Qualified Institutional Placement (QIP), reflecting a strong vote of confidence from both domestic and international investors. The QIP window, open over the past week, witnessed robust participation from qualified institutional buyers (QIBs), including insurance firms, scheduled commercial banks, and foreign portfolio investors. Advertisement
During a board meeting held earlier this week, the company approved the allotment of equity shares to eligible investors. The QIP received bids totalling INR 2,005.90 crore, significantly surpassing the base issue size of INR 1,500 crore, marking a subscription rate of 1.34 times.
IREDA issued 12.15 crore equity shares at an issue price of INR 165.14 per share. This amount includes a premium of INR 155.14 over the face value of INR 10 per share. Interestingly, the issue price stood at a 5% discount to the floor price of INR 173.83, making it an attractive proposition for institutional participants.
The capital raised through this offering is expected to significantly strengthen IREDA's tier-I capital base and improve its overall capital adequacy ratio. These enhancements will enable the agency to provide more robust financial support to India's growing renewable energy sector.
According to IREDA's Chairman and Managing Director Pradip Kumar Das, the successful conclusion of this QIP so soon after the company's IPO in November 2023 reflected the strong trust and confidence shown by both the investor community and the Ministry of New and Renewable Energy (MNRE) in IREDA's long-term prospects.
IREDA, operating under the MNRE, has been a key player in financing and promoting renewable energy and energy efficiency projects across India. This latest capital raise is part of its broader strategy to meet the escalating demand for green energy financing in line with the government's climate goals and transition plans.
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