IREDA Approves ₹5,000 Crore Fundraising via QIP

On January 23, 2025, Indian Renewable Energy Development Agency (IREDA) announced that it will raise ₹5,000 crore through a Qualified Institutional Placement (QIP). The funds will be raised in 1 or more tranches. The company’s board approved this plan during its meeting.

Conditions for the Fundraise

IREDA has specified that the President of India’s shareholding, through the Ministry of New and Renewable Energy, must not decrease by more than 7% of the company’s post-issue paid-up equity share capital.

What is QIP?

A QIP allows listed companies to raise funds by issuing other securities or equity shares to QIBs (qualified institutional buyers), such as mutual funds, foreign investors, and banks. Retail investors cannot participate in a QIP.

Previous Fundraising Efforts

In September 2024, IREDA was approved to raise ₹4,500 crore through another QIP. DIPAM (The Department of Investment and Public Asset Management) approved this fresh equity issue.

Strong Performance in Q3FY25

In Q3FY25, IREDA reported a 27% increase in net profit, reaching ₹425.38 crore. Its revenue grew by 35.6%, and net interest income rose 39% year-on-year.

IREDA stock price has gained nearly 35% over the past year. Although it’s down 35% from its 52-week high of ₹310, it has risen 66% from its 52-week low of ₹121.

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