IREDA Plans to Raise Funds Through QIP
The Indian Renewable Energy Development Agency (IREDA) has received crucial approval from the Department of Investment and Public Asset Management (DIPAM) to proceed with raising funds via a Qualified Institutional Placement (QIP). The agency aims to raise approximately ₹4,500 crore by issuing fresh equity shares. As of September 18, IREDA’s shares experienced a slight drop of 0.11%, closing at ₹227.50 on the Bombay Stock Exchange (BSE), while the company boasts a market capitalization of ₹61,146 crore.
Impact on Government Stake
Following this approval from the Alternate Mechanism, driven by recommendations from a High-Level Committee, the government’s stake in IREDA is expected to decline to 7% of the company’s post-issue paid-up equity. In a recent exclusive conversation with Moneycontrol, IREDA’s Managing Director and Chairman, Pradeep Kumar Das, expressed optimism about securing central government approval for the stake reduction in the near future.
Funding Goals and Strategies
In pursuit of raising funds, IREDA has requested the government to decrease its stake by 10%. The company aims for a fundraising target of ₹4,500 crore to ₹5,000 crore by March 2025. Additionally, in late August, the board of IREDA approved a comprehensive plan to fundraise through a follow-on public offer (FPO) or alternative strategies. Das also mentioned that the agency is looking to secure a loan in the range of ₹24,000 crore to ₹25,000 crore during the current financial year.
Stock Performance Overview
IREDA’s stock has seen a significant decline, plummeting nearly 27% since reaching its all-time high of ₹310 in July 2024. However, it is important to highlight that the stock has experienced a remarkable increase, rising more than sevenfold from its initial public offering (IPO) price of ₹32 per share back in November 2023. Currently, the Government of India retains a 75% equity stake in IREDA.
