IREDA shares rise 4% on plans to raise ₹5,000 crore via QIP

Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) climbed nearly 4% on Tuesday after shareholders of the state-owned company approved a fundraising proposal. The renewable energy company plans to raise up to ₹5,000 crore through qualified institutions placement (QIP) of equity shares, in one or multiple tranches.

Paring previous session losses, IREDA shares rose up to 3.6% to ₹178.40 in the first hour of trade today. The PSU stock opened 1.1% higher at ₹173.90 on the BSE, after ending 2.9% lower at ₹172 in the previous session.  

At the time of reporting, IREDA share price was quoting at ₹173.30, up 0.76%, with a market capitalisation of ₹46,579 crore. The renewable stock touched its 52-week high of ₹310 on July 15, 2024, and a 52-week low of ₹121 on March 14, 2024. Since listing on November 29, 2023, the share price of Miniratna company has zoomed 456% over the initial public offering (IPO) price of ₹32 apiece.

At the current level, IREDA shares have lost 22% of its market value in CY25, while it tumbled over 31% in the past six months, and 7% in a month. In the last one year, the stock has risen nearly 15%.

In an exchange filing last evening, IREDA said that its shareholders approved the company’s fundraising proposal via remote e-voting during the 22nd Extra-Ordinary General Meeting (EGM) held on February 24 through video conferencing.

“IREDA’s Board had earlier approved the fundraising plan on January 23, 2025, which includes the dilution of the Government of India’s shareholding in the company by up to 7% post-issue equity, in one or multiple tranches,” the release noted.

Addressing the shareholders, Pradip Kumar Das, Chairman and Managing Director of IREDA, highlighted the company’s strong financial performance in the first nine months of FY 2024-25, with a loan book of ₹68,960 crore, loan sanctions of ₹31,087 crore, and disbursements of ₹17,236 crore. "The funds raised through QIP will strengthen our green financing capabilities, accelerate loan book growth, and support India’s clean energy targets," he stated.

Das further informed shareholders that IREDA Global Green Energy Finance IFSC Limited, a wholly owned subsidiary of IREDA, recently received the Certificate of Registration from the International Financial Services Centre Authority (IFSCA), allowing it to commence business as a finance company at GIFT City, Gujarat. "This milestone strengthens IREDA’s commitment to lending and serving in foreign currency by reducing hedging risks," he added.

In addition to the fundraising approval, shareholders also consented to amendments in IREDA’s Articles of Association. These amendments include provisions for formation of joint ventures and subsidiaries in India and abroad, along with empowering the Board to exercise enhanced powers under ‘Navratna’ status, subject to government guidelines.

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