The Board of Directors at the Indian Renewable Energy Development Agency (IREDA) has approved a proposal to raise up to ₹5,000 crore through a Qualified Institutions Placement (QIP), as part of its strategy to boost financing for green energy projects. The decision was made during a board meeting on Thursday, with a focus on meeting the rising demand for funding in India’s renewable energy sector.
According to the regulatory filing, the funds will be raised in one or more tranches, with the condition that the shareholding of the President of India, through the Ministry of New and Renewable Energy (MNRE), does not fall by more than 7% of the company’s total equity after the issue. In a statement, IREDA emphasized that the funds would be used to strengthen the company’s efforts in providing financial backing for renewable energy projects, further advancing India’s transition to cleaner energy sources. The issuance will be subject to necessary approvals from shareholders and regulatory bodies.
Pradip Kumar Das, Chairman and Managing Director of IREDA, expressed confidence that the move would enhance the company’s ability to support India’s green energy goals. “This fundraising initiative through QIP demonstrates IREDA’s unwavering commitment to growing India’s renewable energy landscape. It will enable us to expand financial support for clean energy ventures and solidify our leadership in this crucial sector,” he said.
The planned capital raise ensures that the government’s stake in IREDA remains intact, with only a marginal dilution of up to 7% in the post-issue shareholding structure. The Indian Renewable Energy Development Agency (IREDA), a public sector undertaking under the Ministry of New and Renewable Energy (MNRE), is a pivotal institution in promoting clean energy initiatives in India. Established in 1987, IREDA specializes in financing renewable energy and energy efficiency projects, contributing significantly to India’s transition toward a sustainable energy future.
Its diverse portfolio spans solar, wind, hydro, biomass, and energy efficiency projects, supporting both large-scale infrastructure and innovative technologies. By providing financial solutions, including loans and grants, IREDA empowers stakeholders to implement green energy projects, fostering economic growth while addressing climate change. Recognized for its role in driving India’s renewable energy ambitions, IREDA remains instrumental in achieving the nation’s target of 500 GW of renewable energy capacity by 2030.
