New Delhi: The Indian Renewable Energy Development Agency (IREDA) has announced the launch of a Qualified Institutions Placement (QIP) to raise up to ₹5,000 crore through the issuance of equity shares.
QIP Launch Approved by Board
IREDA confirmed in a regulatory filing that the Board of Directors, in its meeting held on June 5, has approved the opening of the QIP to eligible qualified institutional buyers (QIBs). This follows earlier approvals from the Board on January 23, 2025, and from shareholders via a special resolution passed on February 24, 2025.
Floor Price Set at ₹173.83 per Share
The company has fixed the floor price at ₹173.83 per equity share, in line with Regulation 176 of the SEBI (ICDR) Regulations. The issue price will be finalized in consultation with the book running lead managers, and the company has the option to offer up to 5% discount on the floor price.
Purpose and Structure of the QIP
IREDA stated that the capital will be raised through equity issuance in one or more tranches, under applicable laws. The QIP is a strategic step to enhance the company’s capital base and support its long-term lending capacity, particularly in the renewable energy sector.
Market Reaction
Analysts expect volatility in the short term, though they see the capital raise as positive for long-term growth and balance sheet strength.
Important Dates
- Relevant Date for QIP: June 5, 2025
- Floor Price: ₹173.83/share
- Potential Discount: Up to 5%
About IREDA
IREDA, a government-owned non-banking financial institution under the Ministry of New and Renewable Energy, is dedicated to promoting and financing renewable energy and energy efficiency projects across India. Formed in 1987, IREDA is a Navratna organisation owned by the Government of India and administratively controlled by the Ministry of New and Renewable Energy (MNRE).
