IREDA Shareholders Approve Fundraising Plan of Up to ₹5,000 Crore via QIP

State-owned Indian Renewable Energy Development Agency Ltd (IREDA) announced on Monday, February 24, 2025, that its shareholders have approved a plan to raise up to ₹5,000 crore through a Qualified Institutions Placement (QIP) of equity shares.

The fundraising, which will be conducted in one or multiple tranches, will result in a dilution of the Government of India’s shareholding in IREDA by up to 7% post-issue. The proposal had previously received approval from the company’s board on January 23, 2025.

The approval was granted via remote e-voting during IREDA’s 22nd Extra-Ordinary General Meeting (EGM) held on February 24, 2025, through video conferencing. The meeting was chaired by IREDA Chairman and Managing Director Pradip Kumar Das and attended by board members and shareholders.

Strengthening Green Financing Capabilities

Addressing the shareholders, CMD Pradip Kumar Das highlighted IREDA’s strong financial performance in the first nine months of FY 2024-25. As of December 31, 2024, the company reported a loan book of ₹68,960 crore, loan sanctions worth ₹31,087 crore, and disbursements amounting to ₹17,236 crore.

“The funds raised through QIP will strengthen our green financing capabilities, accelerate loan book growth, and support India’s clean energy targets,” Das stated.

Expansion into International Green Energy Finance

During the meeting, Das also informed shareholders about a significant development concerning IREDA’s global operations. IREDA Global Green Energy Finance IFSC Ltd, a wholly owned subsidiary of IREDA, recently received the Certificate of Registration from the International Financial Services Centre Authority (IFSCA).

This approval allows the subsidiary to commence operations as a Finance Company at GIFT City, Gujarat.

“This milestone strengthens IREDA’s commitment to lending and serving in foreign currency by reducing hedging risks,” Das added.

Amendments to Articles of Association

In addition to the fundraising approval, shareholders also consented to key amendments in IREDA’s Articles of Association.

The approved changes include provisions for the formation of joint ventures and subsidiaries both in India and abroad. Furthermore, the amendments empower the Board to exercise enhanced powers under ‘Navratna’ status, subject to government guidelines.

Stock Performance 

On February 25, 2025, IREDA share price traded 2.06% higher at ₹175.55 at 9:19 AM (IST). IREDA’s share price reached a 52-week high of ₹310.00, and a 52-week low of ₹121. As per BSE, the total traded volume for the stock stood at 0.62 lakh shares with a turnover of ₹1.10 crore.

At the current price, IREDA shares are trading at a price-to-earnings (P/E) ratio of 30.13x, based on its trailing 12-month earnings per share (EPS) of ₹5.71, and a price-to-book (P/B) ratio of 4.95, according to exchange data.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.