News Brief
Green Energy Financing Gets A Big Push As IREDA Raises Rs 2,000 Crore Through Share Sale To Qualified Institutional Buyers
Green Energy (LinkedIn) (Representative Image)
The Indian Renewable Energy Development Agency (IREDA), a government-run enterprise that finances renewable energy projects, has raised Rs 2,005 crore by selling shares to large investors, a Ministry of New and Renewable Energy statement said.
IREDA offered 12.15 crore new shares at Rs 165.14 each to institutional investors like banks, insurance companies, and foreign funds.
This share sale was done through a process called Qualified Institutions Placement (QIP), which allows companies to raise money quickly from big investors.
The issue price was slightly lower (5 per cent discount) than the floor price to attract buyers.
The share sale, which started on 5 June and ended on 10 June, received "an encouraging response from a diverse set of both domestic and foreign qualified institutional buyers (QIBs) including insurance companies, scheduled commercial banks and foreign portfolio investors", the ministry said.
The IREDA Board has approved allotment of equity shares to eligible qualified institutional buyers in its meeting held today (11 June).
The ministry said that the funds raised from this issue will boost IREDA’s core financial strength (Tier-I capital) and improve its overall capital adequacy ratio (CAR), enabling it to provide greater support to India’s growing renewable energy sector.
“This capital infusion will empower us to scale up our financing activities, enabling greater investments in renewable energy projects and accelerating India’s transition towards a greener and sustainable energy future,” said Pradip Kumar Das, chairman and managing director, IREDA.
The funds raised will help IREDA strengthen its finances and improve its ability to give loans for clean energy projects like solar, wind, and hydro power.
