IREDA gets nod for Rs 4,500 cr fundraise via QIP route; govt to offload 7% stake
New Delhi: The Indian Renewable Energy Development Agency (IREDA) has received approval from the Department of Investment and Public Asset Management (DIPAM) to raise up to Rs 4,500 crore through a fresh equity share issue via a Qualified Institutional Placement (QIP).
This fundraising initiative, approved by the Alternative Mechanism on the recommendations of a High-Level Committee, will reduce the government’s stake in IREDA by up to 7% of its post-issue paid-up equity.
The capital infusion, set to be executed in one or more tranches, follows an in-principle approval from IREDA's Board of Directors in August 2024.
During this meeting, the board evaluated multiple fundraising avenues, such as a Further Public Offer (FPO), Rights Issue, and Preferential Issue.
Commenting on this approval, IREDA CMD Pradip Kumar Das said, “DIPAM approval represents a critical step forward in our expansion plans. With fresh capital infusion, we will be better positioned to support India’s ambitious renewable energy goals and continue playing a pivotal role in financing clean energy projects across the country.”
On Wednesday, September 18, IREDA's share price dipped slightly by 0.15%, closing at Rs 227.39. Despite this, the stock has surged nearly 120% since January 2024, reported Moneycontrol.
However, it has declined around 27% from its all-time high of Rs 310 in July 2024. According to the report, since its IPO price of Rs 32 per share in November 2023, the stock has seen more than a sevenfold increase.
As of the last close, IREDA’s market capitalization stood at approximately Rs 61,117 crore.
The Government of India currently holds a 75% equity stake in the company, which has a total paid-up and issued capital of Rs 2,284.6 crore, divided into 228.46 crore shares with a face value of Rs 10 each.
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