Indian Renewable Energy Development Agency (IREDA) is planning to raise up to Rs 3,000 crore through a Qualified Institutional Placement (QIP), CNBC-TV18 reported citing people familiar with the matter. The shares of the company closed nearly 2 percent lower on November 18.
The stock has now snapped a two-day gaining streak, closing at Rs 148.14 on Tuesday.
QIP likely to be priced at 5% discount to current market price:
The QIP of the state-run renewable energy financier is likely to be priced at a discount of 5 percent to the current market price, the report added. Motilal Oswal, SBI Cap, IDBI Capital, and Emkay are the likely bankers to the QIP issue, the business news channel quoted sources as saying.
Moneycontrol couldn't independently verify the report.
IREDA's plans to raise Rs 5,000 crore through the QIP:
IREDA had in January announced plans to raise Rs 5,000 crore through the QIP in one or more tranches at a floor price of Rs 173. IDBI Capital Market Services, BNP Paribas, SBI Capital Markets, Emkay Global Financial Services and Motilal Oswal Investment Advisors were appointed as the merchant bankers managing the QIP process.
In June this year, the company announced that it has raised Rs 2,005.90 crore through a QIP of shares at an issue price of Rs 165.14 apiece. Life Insurance Corporation of India (LIC) was allotted 50 percent of the total offer size, worth nearly Rs 1,003 crore at the issue price.
In an exchange filing, IREDA announced that LIC, Societe Generale, Morgan Stanley Asia (Singapore) PTE and Vikasa India EIF I Fund were the entities who were allotted more than 5 percent of the total offering. Nearly 12.15 crore equity shares were issued at an issue price of Rs 165.14 per share via the QIP, marking a discount of over 4.5 percent from the floor price of Rs 173 apiece.
What IREDA management said about reported QIP:
The reported QIP would mark the second tranche of the already-planned issue. “We are planning to raise another Rs 2,500 -3000 crore in the second tranche within this fiscal,” IREDA Chairman and Managing Director Pradip Kumar Das said during an interaction with the reporters in July this year.
This will give the company a further borrowing power worth Rs 30,000 crore (this fiscal), as the thumb rule says you can borrow eight times of this money, he said, adding, “We will try to optimize our equity and our borrowing so that we can optimize lending and overall minimise the borrowing cost.”
IREDA share price:
IREDA shares have dropped over 2 percent in the past five days, and more than 3 percent in the past one month. The stock fell over 15 percent in the past six months, and is down over 33 percent in 2025 so far.
The stock's P/E ratio currently stands at over 27.
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