India Business Journal - IREDA gets government’s nod to raise Rs 4,500 crore through the QIP route

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IREDA gets government’s nod to raise Rs 4,500 crore through the QIP route

IBJ Bureau
Sep 19, 2024

State-owned Indian Renewable Energy Development Agency (IREDA) has said it has received the government’s approval to raise up to Rs 4,500 crore through an issue of equity shares through the qualified institutional placement (QIP) route.

The approval was granted by the Department of Investment and Public Asset Management (DIPAM) based on the recommendations of a high-level committee, a company statement has added.

According to the statement, the fund-raising will be carried out through the QIP route, with a planned dilution of the Union government’s shareholding in IREDA by up to 7 per cent on a post-issue basis to be executed in one or more tranches.

The fund-raising exercise aims to strengthen IREDA’s capital base, enabling the organisation to scale its financing for renewable energy projects and further accelerate India’s transition to clean energy.

“DIPAM approval represents a critical step forward in our expansion plans,” IREDA Chairman and Managing Director Pradip Kumar Das has said in the statement.