Ireda board gives green light to Rs 5,000 crore fundraising through QIP

Government's shareholding in Ireda would not dilute by more than 7 per cent of its 75 per cent stake in the firm, the company said

The board of Indian Renewable Energy Development Agency (Ireda) Ltd has given the green light to raise up to Rs 5,000 crore through a qualified institutional placement (QIP). The decision, aimed at bolstering the company’s capital base, was taken during a board meeting held on Thursday.

 

In a regulatory filing, Ireda confirmed, “The board of the company, at its meeting held today, January 23, 2025, approved the raising of funds by issuing equity shares through a qualified institutions placement (QIP) in one or more tranches for an amount aggregating up to Rs 5,000 crore under applicable laws.”

 

The state-owned company also clarified that the government’s shareholding in Ireda would not dilute by more than 7 per cent of its 75 per cent stake in the firm. The filing stated, “The shareholding of the President of India, acting through the Ministry of New and Renewable Energy, will not dilute by more than 7 per cent of the post-issue paid-up equity share capital, subject to shareholder approval.”

 

Pradip Kumar Das, Chairman and Managing Director (CMD) of Ireda, had earlier told CNBC-TV18 that the QIP was aligned with the company’s plans for this quarter, ensuring a stronger capital base. The raised funds will be instrumental in financing renewable energy projects across the country, reinforcing India’s commitment to clean energy and sustainability.

 

Ireda, a key financier of renewable energy initiatives, aims to enhance its lending capacity to support the nation’s ambitious green energy targets, which include achieving 500 GW of renewable energy capacity by 2030.

 

Ireda’s shares were trading at Rs 196.85 per share, down nearly 2 per cent on the BSE following the announcement.