IREDA gets nod for Rs 4,500 crore fundraise via QIP

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 in a fresh equity share issue through a Qualified Institutional Placement (QIP).

The fundraise, approved by the Alternative Mechanism based on recommendations from a High-Level Committee, will result in a dilution of the government’s stake in IREDA by up to 7% of the company’s post-issue paid-up equity, as a result of the fresh share issue.

The capital infusion, to be executed in one or more tranches, follows an earlier in-principle approval from IREDA's Board of Directors in August 2024, which considered multiple fundraising options, including a Further Public Offer (FPO), Rights Issue, or Preferential Issue.

IREDA share price fell marginally by 0.15 percent on Wednesday, September 18, to end at Rs 227.39. IREDA stock has jumped nearly 120 percent so far this year, since January.

The IREDA stock has lost about 27 percent from its all-time high of Rs 310 in July 2024. Yet, it has ballooned over 7 times over its IPO price of Rs 32 per share in November 2023 less than one year ago.

The company's market capitalisation was at about Rs 61,117 crore as of the last close.

 The Government of India holds 75 percent equity stake in IREDA as of the last update. IREDA has a total paid-up equity and issued capital of Rs 2,284.6 crore, in 228.46 crore shares of face value of Rs 10 each.