IREDA's QIP Success: Boosting India's Renewable Energy Drive

IREDA successfully raised over Rs 2,000 crore through a qualified institutions placement (QIP) issue with significant interest from domestic and foreign buyers. The issue was oversubscribed, marking investor confidence in IREDA's renewable energy initiatives. The capital will bolster IREDA's financial strength and aid India's renewable energy sector growth.

State-owned IREDA has successfully generated over Rs 2,000 crore through a recent qualified institutions placement (QIP). The fund-raising effort, running from June 5 to June 10, attracted robust participation from both domestic and international qualified institutional buyers. Notable participants included insurance firms, scheduled commercial banks, and foreign portfolio investors.

The allocation of equity shares to eligible institutional buyers was sanctioned during the board's meeting on Wednesday. The offering was notably oversubscribed, amassing bids worth Rs 2,005.90 crore against the initial base issue size of Rs 1,500 crore, reaching a subscription rate of 1.34 times.

Financing was achieved by issuing 12.15 crore equity shares at Rs 165.14 each, incorporating a premium of Rs 155.14 per share above the base value of Rs 10. This transaction enhances IREDA's capital adequacy to support India's growing renewable energy sector, reaffirming investor trust post the November 2023 IPO, according to IREDA's Chairman and Managing Director, Pradip Kumar Das.

(With inputs from agencies.)