IREDA Raises Rs.2,005 Crore to Power India's Green Energy Push
IREDA, a state-owned organization, has raised more over Rs.2,000 crore by placing qualifying institutions.
Both domestic and foreign qualified institutional buyers (QIBs), such as insurance companies, scheduled commercial banks, and foreign portfolio investors, responded favorably to the qualified institutions placement (QIP) issue, which was open from June 5–10.
During its meeting, the board authorized the distribution of equity shares to qualified institutional buyers who meet the eligibility requirements.
With bids totaling Rs.2,005.90 crore against the base issue size of Rs.1,500 crore, the QIP was oversubscribed, resulting in a 1.34-fold subscription.
According to IREDA, the capital was raised by issuing 12.15 crore equity shares at a premium of Rs.155.14 per share over the face value of Rs.10.
The floor price of Rs.173.83 per equity share is five percent higher than the issue price of Rs.165.14.
By strengthening IREDA's tier-I capital and overall capital adequacy ratio (CAR), the funds raised through this issue would increase the organization's ability to support India's growing renewable energy industry.
"The successful completion of this QIP in a short span after our IPO in November 2023 is a testament to the trust and confidence the investor community and the MNRE have reposed in the company," IREDA Chairman and Managing Director Pradip Kumar Das said.
Under the Ministry of New and Renewable Energy (MNRE), IREDA finances and promotes energy efficiency and renewable energy projects nationwide.
For the January–March quarter of the fiscal year 2024–25, IREDA's net profit increased by a substantial 49 percent to Rs 502 crore, up from Rs 337 crore in the same period of the previous fiscal year.
The biggest pure-play green finance company in the nation, NBFC, reported revenue of Rs 1,392 crore for the fourth quarter, up 37.7 percent from Rs 1,916 crore for the same period in FY 2023–2024.
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Loan disbursements for the fourth quarter increased 20 percent to Rs 30,168 crore, while loan sanctions for the government-owned NBFC increased 27 percent to Rs 47,453 crore.