IREDA expects govt's approval for stake reduction in few days, says CMD

In late August, IREDA’s board had approved the company’s fundraising plan via follow-on public offer (FPO) or other routes.

State-run Indian Renewable Energy Development Agency (IREDA) expects to receive the Central government’s approval for reducing their share in the company in a few days, chairman and managing director Pradip Kumar Das told Moneycontrol in an interview.

To raise fresh funds, IREDA has requested the government to cut its share by up to 10 percent, said Das, adding that it plans to raise Rs 4,500 crore to Rs 5,000 crore by March 2025.

“We have requested the government to reduce their share for raising fresh equity and talks are in advanced stage. We are expecting the approval to come very soon. We have requested for reduction up to 10 percent. We will have to see how much stake government decides to sell,” said Das.

In late August, IREDA’s board had approved the company’s fundraising plan via follow-on public offer (FPO) or other routes.

Das added the company plans to raise around Rs 24,000 crore to Rs 25,000 crore in debt in the current financial year.

GIFT city subsidiary

Das remains confident for securing borrowers as IREDA incorporated its subsidiary in GIFT City saying the company’s existing borrowers are interested in securing loans GIFT City. The company is working on a policy framework for the same, he added.

“Generally a lender has to worry about borrowers but it is different in our case. We have RE developers, who are already our borrowers, who want to come for forex funding for their domestic and overseas projects,” said Das.

IREDA established in May 2024 a wholly-owned subsidiary in the International Financial Services Centre (IFSC) located in GIFT City, Gujarat.