MUMBAI: The Indian Renewable Energy Development Agency (IREDA) has received approval from the Department of Investment and Public Asset Management (DIPAM) to raise up to ₹4,500 crore through a fresh equity sale via the Qualified Institutional Placement (QIP) route.
Under this, the government will dilute 7 percent of its equity. Currently, the government holds a 75 percent stake in IREDA, with a total paid-up equity and issued capital of ₹2,284.6 crore, spread over 228.46 crore shares with a face value of ₹10 each.
The capital raise, which has been approved by an alternative mechanism based on recommendations from a high-level committee, will result in the government’s stake being reduced by up to 7 percent of IREDA’s post-issue paid-up equity, according to a statement filed by the company on Wednesday. The fundraise will be executed in one or more tranches.
This move follows an earlier in-principle approval from IREDA’s board in late August, which had endorsed multiple fundraising options, including a further public offer, rights issue, or preferential issue.
IREDA’s share price, which had surged since its bumper listing last November, edged down by 0.15 percent on Wednesday, closing at ₹227.39. Despite this, the stock has risen nearly 120 percent since January and more than sevenfold its issue price.
However, it has fallen about 27 percent from its all-time high of ₹310 in July 2024. Even so, it remains over seven times its initial public offering (IPO) price of ₹32 per share, set in November 2023, less than a year ago.
Earlier this month, IREDA Chairman Pradip Kumar Das told TNIE that the company was "close to launching its IFSC unit, which will lead to a lowering of its fundraising cost, resulting in lower costs for borrowers too."
In addition to the equity raise, the company is planning to raise approximately ₹24,000 crore in debt capital this fiscal year for on-lending.