IREDA raises over ₹2,000 cr via QIP route

New Delhi, Jun 11 (PTI) State-owned IREDA has raised over ₹2,000 crore through the issuance of qualified institutions placement.

The qualified institutions placement (QIP) issue, which was open from June 5-10, received an encouraging response from both domestic and foreign qualified institutional buyers (QIBs), including insurance companies, scheduled commercial banks and foreign portfolio investors.

The board has approved the allotment of equity shares to eligible qualified institutional buyers in its meeting held on Wednesday.

The QIP was oversubscribed with bids amounting to ₹2,005.90 crore against the base issue size of ₹1,500 crore, achieving a subscription of 1.34 times.

The capital was mobilised by issuing 12.15 crore equity shares at ₹165.14 per share, which includes a premium of ₹155.14 per share over the face value of ₹10, IREDA said.

The issue price of ₹165.14 reflects a discount of 5 per cent to the floor price of ₹173.83 per equity share.

The capital raised through this issue will further strengthen IREDA's tier-I capital and overall capital adequacy ratio (CAR), enhancing its capacity to support the expanding renewable energy sector in India.

"The successful completion of this QIP in a short span after our IPO in November 2023 is a testament to the trust and confidence the investor community and the MNRE have reposed in the company," IREDA Chairman and Managing Director Pradip Kumar Das said.

IREDA, under the Ministry of New and Renewable Energy (MNRE), is into financing and promoting renewable energy and energy efficiency projects across the country.