Indian Renewable Energy Development Agency (IREDA) on Thursday, January 23, said it will raise ₹5,000 crore through a qualified institutions placement (QIP) route in one or more tranches. In an exchange filing on Thursday, January 23, the Navratna PSU company said the board approved the fundraising plan at its meeting today.
“The board of the company, at its meeting held today, i.e., Thursday, January 23, 2025, has considered and approved the raising of funds by issue of equity shares through a qualified institutions placement (QIP), in one or more tranches, for an amount aggregating up to ₹5,000 crore,” IREDA said.
The company has a specific condition that the President of India’s shareholding (via the Ministry of New and Renewable Energy) must not decrease by more than 7 per cent of the company’s post-issue paid-up equity share capital.
A QIP is a fundraising method used by listed companies by issuing equity shares, fully or partly convertible debentures, or other securities to qualified institutional buyers (QIBs), such as mutual funds, foreign portfolio investors (FPIs), banks, insurance companies, and pension funds. Retail investors are not eligible for a QIP.
In September last year, IREDA received government approval to raise ₹4,500 crore through a fresh equity issue. The Department of Investment and Public Asset Management (DIPAM) gave its approval to the company on September 18, 2024, to raise up to ₹4,500 crore in a fresh equity issue through a QIP.
On January 9, the PSU company reported a net profit growth of 27 per cent year-on-year (YoY) at ₹425.38 crore for Q3FY25, while its total revenue from operations increased 35.6 per cent YoY to ₹1,698.45 crore. The company’s net interest income (NII) during the quarter rose 39 per cent YoY to ₹622.3 crore.
The company said it sanctioned loans worth ₹31,087 crore in Q3FY25, up 129 per cent from ₹13,558 crore during the year-ago period. Its loan disbursements increased 41 per cent YoY to ₹17,236 crore, while loan book outstanding grew by 36 per cent YoY to ₹69,000 crore.
Till the close of the previous session, IREDA’s share price has gained nearly 35 per cent over the last year. The stock hit a 52-week low of ₹121 on March 14, followed by a 52-week high of ₹310 on July 15 last year. Considering the previous close of the stock, it is down over 35 per cent from its 52-week high but up 66 per cent from its 52-week low level.
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