IREDA board approves plan to raise Rs 4,500 crore in equity capital

The number of securities to be issued will be decided at a later date, it said.

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The Indian Renewable Energy Development Agency Limited (IREDA) announced on August 29 that its Board of Directors has given in-principle approval to raise equity capital of up to Rs 4,500 crore.

The funds will be raised in one or more tranches through methods including Further Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, Preferential Issue, or other permitted modes, the green financing NBFC said.

"...this is to inform that the Board of Directors of Indian Renewable Energy Development Agency Limited (IREDA) in its meeting held today i.e., Thursday, August 29, 2024 has considered and accorded In-principle approval for raising of funds by way of equity capital for an amount aggregating upto Rs 4500 Crore in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or a combination thereof in such manner and on such terms and conditions as may be deemed appropriate, in accordance with the provisions of the applicable Acts/Regulations/Guidelines and subject to the approval from the Govt of India and other statutory/regulatory approvals," the company said in a regulatory filing.

The number of securities to be issued will be decided at a later date, it said. The fundraising initiative is subject to approval from the Government of India and other relevant statutory and regulatory authorities.

IREDA is a mini Ratna firm under the administrative controls of the ministry of new and renewable energy. It offers an array of financial products and associated services, from project inception to post-completion, for renewable energy projects and related activities such as equipment manufacturing and transmission.

The company's stock made a remarkable market debut on November 29 last year, listing with a premium of more than 56 percent.

IREDA reported a 30 percent YoY growth in its net profit to Rs 383.69 crore for the quarter ended June 30, 2024. Its revenue from operations jumped 32 percent YoY to Rs 1.502 crore in the quarter. The NBFC's asset quality also improved.

On August 29, IREDA shares settled at Rs 254.75 apiece on the NSE, which was up Rs 0.80 or 0.32 percent higher than the previous day's close.