Sun, Wind, and Capital: IREDA Opens QIP Floodgates at ₹173.83 Per Share

Updated: June 05, 2025 21:25

Image Source: Saur Energy International, Construction Week India

The Indian Renewable Energy Development Agency Ltd (IREDA) has just made a big announcement: they’re kicking off their Qualified Institutions Placement (QIP) for equity shares, with a starting price set at ₹173.83 per share. This significant fundraising effort aims to gather up to ₹5,000 crore, marking a crucial step in advancing India’s renewable energy goals.

Key Highlights

Fundraising Approval: During IREDA’s 22nd Extra-Ordinary General Meeting, which was held via video conferencing and led by CMD Pradip Kumar Das, shareholders gave the green light for the QIP proposal.
Floor Price Set: The QIP will be available at a floor price of ₹173.83 per share, which is quite close to the recent market price (IREDA shares were trading at ₹174.35 on May 29, 2025).
Government Stake Dilution: This fundraising effort will lead to a dilution of the Government of India’s shareholding by up to 7% after the issue, as the board had previously approved.
Purpose: The funds raised will be used to enhance IREDA’s green financing capabilities, boost loan book growth, and help meet India’s clean energy targets.
Financial Performance: IREDA has reported a strong loan book totaling ₹68,960 crore, with loan sanctions reaching ₹31,087 crore and disbursements of ₹17,236 crore in the first nine months of FY 2024-25.
Strategic Expansion: IREDA’s fully owned subsidiary, IREDA Global Green Energy Finance IFSC Limited, has received the go-ahead from regulators to operate out of GIFT City, Gujarat, which will allow for foreign currency lending and minimize hedging risks.
Enhanced Governance: Shareholders also approved changes to the Articles of Association, which will enable joint ventures and subsidiaries both in India and abroad, while also empowering the Board under ‘Navratna’ status.

This QIP is set to significantly bolster IREDA’s role as a leading green financier and support India’s ambitious renewable energy growth targets.

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

— Pradip Kumar Das

Source: Press Information Bureau, Angel One, SolarQuarter, Mercom India

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