IREDA Successfully Raises Fresh Capital to Boost Green Financing

Government-owned Indian Renewable Energy Development Agency Ltd. (IREDA) has successfully raised Rs 2,005.90 crore (~US$ 230 mn) through a Qualified Institutions Placement (QIP).

Under the control of the Ministry of New and Renewable Energy (MNRE), IREDA is a Non-Banking Financial Institution formed to promote, develop and extend financial assistance for setting up projects relating to new and renewable sources of energy.

The fresh capital was mobilised by issuing 12.15 crore equity shares for Rs 165.14 per share, which includes a premium of Rs 155.14 per share over the face value of Rs 10. The issue price of Rs 165.14 reflects a discount of 5.00% to the floor price of Rs 173.83 per equity share.

Launched on June 5, 2025, the QIP issue closed on June 10, 2025, receiving 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 Board has approved allotment of equity shares to eligible qualified institutional buyers in its meeting held today, i.e. June 11, 2025.

The QIP was oversubscribed with bids amounting to Rs 2,005.90 crore against the base issue size of Rs 1,500 crore, achieving a subscription of 1.34 times.

In November 2023, the company went public with an initial public offering and reported its highest-ever annual Profit After Tax (PAT) of Rs 1,699 crore on revenue of Rs 6,742 crore in FY 2024-25.

The capital raised through this successful issue will further strengthen IREDA’s Tier-I capital and overall Capital Adequacy Ratio (CAR), enhancing the company’s capacity to support the expanding renewable energy sector in India.

Reflecting on this achievement, Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, said: “The successful completion of this QIP in a short span after our IPO in November 2023 is a testament to the trust and confidence the investor community and the Ministry of New & Renewable Energy have reposed in IREDA. 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.”