IREDA raises ₹2,006 cr via QIP to boost green financing; stock rises 1%

Shares of the state-owned Indian Renewable Energy Development Agency Ltd. (IREDA) gained nearly 1% in intraday trade on Wednesday after the non-banking financial institution (NBFC) raised ₹2,005.90 crore through a qualified institutional placement (QIP). The QIP saw participation from marquee investors such as Life Insurance Corporation of India, Societe Generale, Morgan Stanley Asia (Singapore) PTE, Vikasa India EIF I Fund, and others.

The capital was mobilised by issuing 121.5 million equity shares at a price of ₹165.14 per share, which includes a premium of ₹155.14 per share over the face value of ₹10. The issue price for the QIP was ₹165.14, a discount of 5% to the floor price of ₹173.83 per equity share.

Buoyed by the news, IREDA shares rose by as much as 0.95% to ₹184.20 on the BSE. At the time of reporting, the IREDA share price was up 0.4% at ₹183.15, with a market capitalisation of ₹49,226 crore.

Launched on June 5, 2025, the QIP issue closed on June 10, 2025, receiving a good response from a diverse set of both domestic and foreign qualified institutional buyers (QIBs), including insurance companies, scheduled commercial banks and foreign portfolio investors. The QIP was oversubscribed with bids amounting to ₹2,005.90 crore against the base issue size of ₹1,500 crore, achieving a subscription of 1.34 times.

In an exchange filing this morning, IREDA said that its board approved the allotment of 121.5 million equity shares of a face value of ₹10 each to eligible QIBs in its meeting held today. “Pursuant to the allotment of equity shares under the QIP, the paid-up equity share capital of the company stands increased from ₹26,87,76,47,060 crore consisting of 2,68,77,64,706 equity shares to ₹28,09,23,12,680 crore consisting of 2,80,92,31,268 equity shares each.”

The capital raised through this issue will further strengthen IREDA's Tier 1 capital and overall capital adequacy ratio (CAR), enhancing the company’s capacity to support the expanding renewable energy sector in India, it said in a release.

“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 Ministry of New & Renewable Energy have reposed in IREDA. This capital infusion will empower us to scale up our financing activities, enabling greater investments in renewable energy projects and accelerating India’s transition towards a greener and sustainable energy future,” said Pradip Kumar Das, Chairman & Managing Director, IREDA.

Established in 1987, IREDA is an RBI-registered NBFC engaged in promoting, developing, and extending financial assistance for setting up projects related to new and renewable sources of energy. The PSU stock made its market debut on November 29, 2023, after raising ₹2,150.21 crore via its initial stake sale at a price band of ₹30-32 per share. 

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