Amidst a recent development, PSU IREDA (Indian Renewable Energy Development Agency) announced mulling their follow-on public offer (FPO) as well as perpetual debt to meet its future capital requirements and onward lending for renewables.
Mr. Pradip Kumar Das, Chairman & Managing Director of IREDA, said that the PSU has been planning an FPO as well as perpetual debt for meeting future capital requirements of the company and onward lending mainly for renewable energy projects. He further stated that the loan disbursements are expected during the current fiscal year given the government’s push for renewable energy projects in the country.
Loan disbursements by IREDA increased about 16% in 2023-24, and the company has a borrowing plan of Rs 24,200 crore for the current fiscal.
With an increase in loan disbursements in 2024-25, the company will require more money than planned borrowing this fiscal to meet its fund requirements. CMD Das pointed out that the market is supportive and this is the right time to go to the market for raising funds via FPO.
The CMD mentioned that the PSU’s loan disbursements increased from Rs 16,071 crore in 2021-22 to Rs 21,639 crore in 2022-23 and further to Rs 25,089 crore in 2023-24. Loan disbursements by IREDA increased about 16% in 2023-24, he said, adding that the company has a borrowing plan of Rs 24,200 crore for the current fiscal.
Mr. Das stated that IREDA shall soon be listed for issuing bonds eligible for exemption under Section 54EC (aka Capital Gain Bonds) of the Income Tax Act. This will fetch them fixed-income instruments that provide capital gains tax exemption under Section 54EC to investors.
