Description

In a significant development aimed at accelerating India’s green energy ambitions, the Indian Renewable Energy Development Agency (IREDA) has successfully secured Rupees 2,005.90 crore through a Qualified Institutional Placement (QIP). This strategic fundraise will enhance the agency’s capacity to support renewable energy initiatives and reinforce its capital adequacy to meet the growing demand for clean energy financing.

Between June 5 and June 10, 2025, IREDA conducted its latest QIP offering, drawing substantial interest from institutional investors. Coming on the heels of a successful IPO in November 2023, the capital raised demonstrates sustained investor confidence in IREDA’s role as a key financier in India’s renewable energy sector. The funds are intended to fortify Tier-I capital and empower the agency to fund additional projects aligned with the nation’s energy transition and climate commitments.

QIP Details At Glance

• Total Proceeds: Rupees 2,005.90 crore

• Number of Shares Issued: 12.15 crore equity shares

• Issue Price Per Share: Rupees 165.14

• Face Value: Rupees 10

• Premium Component: Rupees 155.14

• Discount: 5% lower than the floor price of Rupees 173.83

• Initial Issue Size: Rupees 1,500 crore

• Oversubscription: 1.34 times

Purpose Behind QIP

The QIP was launched with clear objectives:

• Strengthening Tier-I capital reserves

• Enhancing the Capital Adequacy Ratio (CAR)

• Expanding lending capabilities for solar, wind, hydro, and bioenergy projects

• Enabling alignment with India’s net-zero emission goals and clean energy targets

Investor Response

The offering witnessed robust interest from a broad spectrum of institutional investors, including:

• Domestic insurance companies

• Scheduled commercial banks

• Foreign Portfolio Investors (FPIs)
  This diversified participation underscores both domestic and global trust in IREDA’s operational and financial stability.

About IREDA

The Indian Renewable Energy Development Agency is a government-owned non-banking financial institution operating under the Ministry of New and Renewable Energy (MNRE). It plays a vital role in offering financial support for projects in the renewable energy, energy efficiency, and conservation space.

Since its listing in 2023, IREDA has been actively working to expand its capital base and attract private sector engagement to boost India's clean energy momentum.

Significance Of This Capital Raise

This successful QIP will:

• Increase liquidity to fund large-scale renewable energy ventures

• Empower the agency to take a leading role in India’s transition to sustainable energy

• Reinforce investor confidence in public sector institutions involved in climate-focused finance

• Contribute significantly to India's long-term vision of becoming a net-zero carbon emitter by 2070

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