IREDA Establishes QIP Floor Price at Rs 173.83 per Share for Rs 5,000 Crore Fundraising

The Indian Renewable Energy Development Agency Ltd (IREDA) has set the floor price for its qualified institutional placement (QIP) at Rs 173.83 per share. This move aims to raise approximately Rs 5,000 crore. The decision follows the board's approval in January and subsequent shareholder consent in February.

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In a recent regulatory filing, IREDA announced that the QIP will open on June 5, 2025. This offering is targeted at eligible qualified institutional buyers. The board has also sanctioned the preliminary placement document and draft application form related to this QIP.

QIP Floor Price and Discount

The floor price of Rs 173.83 per share is based on the Securities and Exchange Board of India's (SEBI) Issue of Capital and Disclosure Requirements rules. Additionally, IREDA may offer a discount of up to 5% on this floor price, as permitted by shareholder approval.

IREDA will determine the final issue price in collaboration with the book running lead managers appointed for this purpose. The trading window will remain closed until further notice due to the QIP process.

Share Sale and Equity Dilution

The share sale to institutional investors will not exceed a dilution of 7% of IREDA's post-issue paid-up equity share capital. This strategic move is part of IREDA's broader plan to bolster its financial resources for meeting the increasing demand for green energy financing.

As a non-banking financial institution under the Ministry of New and Renewable Energy, IREDA plays a crucial role in supporting renewable energy projects across India. The funds raised through this QIP are expected to enhance its capacity to finance such initiatives.

The board's decision aligns with its earlier resolutions passed on January 23 and February 24, which authorised the opening of this proposed issue. These steps reflect IREDA's commitment to expanding its financial capabilities in line with India's renewable energy goals.

With inputs from PTI