MUMBAI: The Indian Renewable Energy Development Agency (Ireda), a public sector non-bank leader focused on financing green energy projects, has announced plans to raise Rs 4,500 crore in equity capital. The funds will be raised through a follow-on public offer (FPO), qualified institutional placement (QIP), rights issue, preferential issue, or other permitted modes, as decided by the board in a meeting on Friday.
The number of securities to be issued will be determined later. The raised funds will be used for on-lending activities and are subject to approval from the government and other relevant statutory and regulatory authorities.
“Our board has accorded in-principle approval for raising funds by way of equity capital for an amount aggregating up to Rs 4,500 crore in one or more tranches through FPO/QIP/right issue/preferential issue or any other permitted mode or a combination thereof,” the company said in an exchange filing.
Ireda is a mini-ratna company under the administrative control of the Ministry of New and Renewable Energy. It offers a range of financial products and associated services, from project inception to post-completion, for renewable energy projects and related activities such as equipment manufacturing and transmission.
The company's stock made a remarkable market debut on November 29, 2023, listing with a premium of more than 56 percent. Since then, it has risen to Rs 310, though it was trading flat at Rs 259.80 on the BSE today.
Ireda reported a 30 percent growth in its net profit to Rs 384 crore for the June quarter, on revenue of Rs 1,502 crore, reflecting a 32 percent year-on-year increase.