The Indian Renewable Energy Development Agency (IREDA) has successfully raised ₹2,005.90 crore through a Qualified Institutional Placement (QIP), aimed at strengthening its green financing capacity. The funds were mobilised by issuing 12.15 crore equity shares at ₹165.14 per share, including a premium of ₹155.14 over the face value of ₹10.
The QIP issue was launched on June 5 and closed on June 10. The issue price represented a 5 per cent discount on the floor price of ₹173.83. The Board of Directors approved the allotment of shares to eligible Qualified Institutional Buyers (QIBs) at its meeting held today.
The issue received strong interest from a wide range of domestic and international institutional investors, including insurance companies, scheduled commercial banks, and foreign portfolio investors. The offering was oversubscribed, garnering bids worth ₹2,005.90 crore against a base issue size of ₹1,500 crore, translating to a subscription rate of 1.34 times.
IREDA stated that the capital raised through the QIP will bolster its Tier-I capital and enhance its Capital Adequacy Ratio (CAR), enabling the agency to expand financing support for renewable energy projects across the country.
IREDA Chairman and Managing Director Pradip Kumar Das said the successful completion of the QIP so soon after the company’s initial public offering in November 2023 reflects strong investor confidence in the institution’s role in the renewable energy sector.
“This capital infusion will empower us to scale up our financing activities, enabling greater investments in renewable energy projects and accelerating India’s transition towards a greener and sustainable energy future,” he said.