Indian Renewable Energy Development Agency Ltd. said on Wednesday it has successfully raised ₹2,005.90 crore ($240 million) through a qualified institutions placement, aimed at expanding its capacity to fund renewable energy projects across the country.

QIP is a capital-raising mechanism publicly listed companies use to issue equity shares directly to a specific group of institutional investors known as qualified institutional buyers.

Oversubscribed Issue Draws Strong Institutional Demand

The state-run lender issued 121.5 million equity shares at ₹165.14 apiece, representing a 5 percent discount to the floor price of ₹173.83.

The QIP, launched on June 5 and closed on June 10, attracted robust demand from both domestic and foreign QIBs, including insurance companies, scheduled commercial banks and foreign portfolio investors.

The offering was oversubscribed, with total bids equaling the final allotment of ₹2,005.90 crore, against a base issue size of ₹1,500 crore, translating to a subscription rate of 1.34 times.

The IREDA board approved the share allotment at a meeting held earlier on Wednesday.

Capital Infusion to Strengthen Lending Capacity

The proceeds from the QIP will bolster IREDA’s Tier-I capital and improve its capital adequacy ratio, enhancing its ability to provide financing for clean energy initiatives.

CAR is the ratio of a bank’s capital to its risk-weighted assets and current liabilities

The fundraising comes just months after IREDA’s successful initial public offering in November 2023.

“This capital infusion will empower us to scale up our financing activities, enabling greater investments in renewable energy projects and accelerating India’s transition towards a greener and sustainable energy future,” Chairman and Managing Director Pradip Kumar Das said in a statement.

Government Support and Strategic Vision

IREDA, which operates under the Ministry of New and Renewable Energy, thanked government leaders and departments for their support, including Union Minister Pralhad Joshi, Minister of State Shripad Naik, MNRE Secretary Santosh Kumar Sarangi, and the Department of Investment and Public Asset Management.

The agency reaffirmed its commitment to spearheading the country’s green energy financing, as India seeks to meet ambitious renewable energy targets and reduce its carbon footprint in line with global climate commitments.

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