New Delhi, June 11, 2025:
The Indian Renewable Energy Development Agency Ltd. (IREDA) has successfully concluded its Qualified Institutions Placement (QIP), raising ₹2,005.90 crore to fortify its capital base and accelerate green financing initiatives. This strategic capital raise demonstrates IREDA’s growing stature in India’s clean energy ecosystem and reinforces its capacity to mobilize funding for the country’s expanding renewable energy sector.
QIP Details: Strong Market Confidence
The QIP offering involved the issue of 12.15 crore equity shares at a price of ₹165.14 per share, which includes a premium of ₹155.14 over the face value of ₹10 per share. The issue price reflects a 5% discount to the floor price of ₹173.83, in line with standard regulatory norms to encourage robust participation.
Launched on June 5, 2025, the QIP closed on June 10, 2025, and witnessed enthusiastic participation from a diverse pool of Qualified Institutional Buyers (QIBs), including:
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Insurance Companies
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Scheduled Commercial Banks
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Foreign Portfolio Investors (FPIs)
The Board of Directors of IREDA formally approved the allotment of equity shares during its meeting held on June 11, 2025.
Oversubscription Signals Market Trust
The QIP issue was oversubscribed, raising ₹2,005.90 crore against the base issue size of ₹1,500 crore, translating to a subscription rate of 1.34 times. This overwhelming response reflects strong investor confidence in IREDA’s leadership, vision, and performance in the renewable energy financing space.
Capital Strengthening for Greener Goals
The proceeds from this QIP will contribute significantly to:
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Strengthening IREDA’s Tier-I capital
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Enhancing the Capital Adequacy Ratio (CAR)
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Expanding its capacity to provide financial assistance for green energy projects
This infusion of capital comes at a crucial juncture as India intensifies its efforts toward achieving its renewable energy targets under Nationally Determined Contributions (NDCs) and the Net Zero Emissions target by 2070.
Leadership Remarks: A Vision for Clean Energy Expansion
Speaking on the occasion, Shri Pradip Kumar Das, Chairman and Managing Director, IREDA, remarked:
“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 Ministry of New & Renewable Energy have reposed in IREDA. 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.”
Government and Institutional Support
CMD Shri Pradip Kumar Das extended heartfelt gratitude to the Government leadership and stakeholders for their unwavering support, specifically acknowledging:
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Shri Pralhad Joshi, Hon’ble Union Minister of New & Renewable Energy, Consumer Affairs and Food & Public Distribution
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Shri Shripad Naik, Hon’ble Minister of State for Power and New & Renewable Energy
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Shri Santosh Kumar Sarangi, Secretary, Ministry of New & Renewable Energy (MNRE)
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Department of Investment and Public Asset Management (DIPAM)
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IREDA’s Board of Directors
This collaborative approach between the public sector and financial institutions underscores a unified commitment to India’s renewable energy mission.
Reaffirming Commitment to Clean Energy Financing
IREDA expressed its appreciation to all participating institutional investors and reaffirmed its dedication to spearheading the country’s clean energy financing. The successful QIP not only enhances IREDA’s financial strength but also sends a strong signal of confidence to global investors eyeing India’s green growth story.
Conclusion: IREDA’s Momentum Continues
The successful QIP marks yet another strategic milestone for IREDA, following its IPO in November 2023. As India’s premier non-banking financial institution (NBFC) for the renewable energy sector, IREDA continues to play a pivotal role in channeling capital toward sustainable projects. With a bolstered capital base, the agency is well-positioned to scale up its role in accelerating India’s energy transition and achieving its ambitious renewable energy goals.
For more details check press release on PIB website.
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