IREDA launches QIP to raise up to ₹4,500 crore

State-owned Indian Renewable Energy Development Agency Ltd (IREDA) on Thursday (June 5) launched a qualified institutional placement (QIP) to raise up to ₹4,500 crore.

The base size of the offering is ₹1,500 crore, with an additional upsize option of ₹3,000 crore, taking the total potential issue size to ₹4,500 crore. The indicative issue price for the QIP is ₹165.14 per share, representing a 6.4% discount to IREDA’s last closing price.

The development comes after the Indian Renewable Energy Development Agency Ltd (IREDA) board in January this year approved a QIP to raise up to ₹

5,000 crore. Subsequently, the proposal was cleared by the company's shareholders in February.

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"Pursuant to the approval of the Board of Directors at its meeting held on January 23, and approval of the shareholders of the company by way of a special resolution passed on February 24, the Board in its meeting held has approved the authorising the opening of the proposed issue on June 5, 2025, to eligible qualified institutional buyers," the company said in a regulatory filing.

The board has also approved the preliminary placement document and the draft of the application form, in connection with the QIP, it added. The company also said it may offer a discount of up to 5% on the floor price in line with shareholder approval.

IREDA said the issue price will be determined by the company in consultation with the book running lead managers appointed for the issue. Further, the trading window will remain closed for the purpose of the QIP issue till further intimation.

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The share sale to institutional investors will not dilute more than 7% of the post-issue paid-up equity share capital of the company. IREDA said it will use the financial resources will support the growing demand for green energy financing.

IREDA is a non-banking financial institution under the Ministry of New and Renewable Energy. Shares of Indian Renewable Energy Development Agency Ltd ended at ₹176.50, up by ₹2.55, or 1.47%, on the BSE.