IREDA To Raise ₹50 Billion Through QIP For Green Energy Growth
Government shareholding in IREDA stays with a 7% dilution
January 23, 2025
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The Indian Energy Development Agency (IREDA), a public sector company under the Ministry of New and Renewable Energy (MNRE), has announced plans to raise ₹50 billion (~$588.24 million) through a qualified institutions placement (QIP) of equity shares.
The QIP will be conducted in one or more tranches per applicable laws and aims to limit the Government of India’s maximum shareholding dilution in IREDA to 7% in the post-issue paid-up equity capital.
The decision was approved during the agency’s board of directors meeting. The QIP aims to contribute to meeting India’s increasing demand for green energy financing.
To add 50 GW of renewable capacity annually over the five years, India requires around ₹900 billion (~$10.7 billion) to ₹1 trillion (~$11.9 billion) in equity per year.
Foreign direct investment in India’s renewable energy sector saw a rise of 50% year-over-year in the financial year 2023-24. Foreign investment in renewables stood at $3.76 billion (₹315.84 billion) compared to $2.5 billion (₹206.5 billion) the previous financial year
Recently, IREDA reported a profit after tax of ₹4.25 billion (~$51.83 million) during the third quarter of the financial year 2025, reflecting a 27% year-over-year growth. It recorded ₹16.99 billion (~$207.20 million) in revenue from operations, an over 35.5% increase from ₹12.53 billion (~$150.80 million) in the corresponding quarter of the previous financial year.
Earlier this year, the IREDA reported increased loan approvals and disbursements for the year ending December 31, 2024. Loan approvals surged to ₹310.87 billion (~$3.79 billion) as of December 31, 2024, compared to ₹135.58 billion (~$1.65 billion) in the corresponding period of 2023, marking a 129% increase.
IREDA’s loan approvals surged to ₹310.87 billion (~$3.6 billion) as of December 31, 2024, compared to ₹135.58 billion (~$1.58 billion) in the corresponding period of 2023, marking a 129% increase. Loan disbursements grew by 41%, reaching ₹172.36 billion (~$2 billion) in 2024, up from ₹122.20 billion (~$1.42 billion) in 2023.
