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

The fundraising initiative, which may be executed in one or multiple tranches, aims to enhance IREDA’s financial strength and support India’s clean energy transition.

Shareholders of the Indian Renewable Energy Development Agency Ltd. (IREDA) have approved a proposal to raise up to ₹5,000 crore through a Qualified Institutions Placement (QIP) of equity shares. The approval was granted during the 22nd Extra-Ordinary General Meeting (EGM) held today via video conferencing. The meeting was chaired by Shri Pradip Kumar Das, Chairman and Managing Director of IREDA, and attended by members of the Board and shareholders.

The fundraising initiative, which may be executed in one or multiple tranches, aims to enhance IREDA's financial strength and support India's clean energy transition. The Board of IREDA had earlier approved the plan on January 23, 2025, which includes the dilution of the Government of India's shareholding by up to 7% post-issue equity.

Strengthening Green Financing and Loan Portfolio

Addressing the shareholders, Shri Pradip Kumar Das highlighted IREDA's robust financial performance for the first nine months of FY 2024-25. The company recorded a loan book of ₹68,960 crore, with loan sanctions amounting to ₹31,087 crore and disbursements reaching ₹17,236 crore.

"The funds raised through QIP will strengthen our green financing capabilities, accelerate loan book growth, and further our commitment to India's renewable energy targets. This capital infusion will enhance our ability to provide financing for clean energy projects and contribute to India's sustainable development," Shri Das stated.

Global Expansion and Financial Milestone

Shri Das also informed shareholders about a key milestone achieved by IREDA's wholly owned subsidiary, IREDA Global Green Energy Finance IFSC Limited. The subsidiary recently received a Certificate of Registration from the International Financial Services Centre Authority (IFSCA), enabling it to commence operations as a Finance Company at GIFT City, Gujarat.

"This strategic expansion strengthens IREDA's capability to provide financing in foreign currency while mitigating hedging risks. It marks an important step in our international growth and ability to support renewable energy projects beyond India," he added.

Amendments to Articles of Association and 'Navratna' Empowerment

In addition to the fundraising approval, shareholders also consented to amendments in IREDA's Articles of Association. These amendments include provisions for the formation of joint ventures and subsidiaries both in India and internationally. Furthermore, they empower the Board with enhanced decision-making capabilities under the 'Navratna' status, subject to government regulations.

These developments mark a significant step in IREDA's journey as a leading green energy financier, reinforcing its role in India's renewable energy sector and global clean energy initiatives.