IREDA board approves fundraise of up to Rs 5,000 crore via QIP, shares in red

Indian Renewable Energy Development Agency (IREDA) Ltd board has approved a fundraise of up to Rs 5,000 crore through a qualified institutional placement (QIP). The decision was taken during the state-owned company’s board meeting held on Thursday.

In a regulatory filing, IREDA stated, “Board of the Company, at its meeting held today, i.e., Thursday, January 23, 2025, has considered and approved the raising of funds by issue of equity shares through a qualified institutions placement (QIP), in one or more tranches, under applicable laws, for an amount aggregating up to ₹5,000 crore.”

The company further clarified that the government’s stake sale in the QIP would not exceed 7 percent of its 75 percent holding in the firm. “The shareholding of the President of India, acting through the Ministry of New and Renewable Energy, Government of India, does not dilute more than 7% of the post-issue paid-up equity share capital of the Company, and subject to the receipt of approval of the shareholders of the Company,” the filing added.

IREDA’s CMD, Pradip Kumar Das, had earlier told CNBC-TV18 that the QIP was on track for this quarter, aligning with the company’s plans to strengthen its capital base.