IREDA Stock Falls By 1.47% Following Its QIP Launch Of Rs 5000

Indian Renewable Energy Development Agency (IREDA) share Price ended more than a percent on Friday, June 6, after the company launched its qualified institutional placement (QIP) worth Rs 5,000 crore as the renewable energy financier looks to fund its next phase of growth.

IREDA shares opened lower at Rs 174 and hit an intraday low of Rs 172.51 on the BSE on Friday, June 6, reacting to the company's launch of QIP. The stock ultimately closed at a 1.4% low at Rs 175.

QIP Details

The Renewable Energy firm IREDA had launched a qualified institutional placement (QIP) to raise Rs 5000 crore. The floor price has been set at Rs 173.83 per share on Thursday, June 5, and is eligible to qualified investors. The floor price was around 1.5% lower than the previous day's closing levels of Rs 176.50 for the IREDA share price on the BSE.

The company may also offer a discount of up to 5% on the floor price, based on shareholder approval. Along with approving the fundraising, IREDA's board also cleared the preliminary placement document and the draft application form required for the QIP process.

Q4 FY25 Financial Performance

Despite a dip in its share price, IREDA reported strong financial performance in the fourth quarter of FY25. The company posted a net profit of Rs 502 crore, marking a 49% year-on-year increase from Rs 337 crore in the same period last year.

Revenue from operations rose by 37% to Rs 1,904 crore, up from Rs 1,391 crore in Q4 FY24. However, for the full fiscal year, there was a slight decline in margins, with the net profit margin easing to 25.14% from 25.22% and the operating margin falling to 31.01% from 33.92%.

Stock Performance Overview

IREDA's stock has gained 9% over the past month, but it has fallen nearly 20% since the start of the calendar year 2025. The stock remains under pressure, influenced by modest QIP pricing and broader market dynamics.

IREDA entered the stock market in December 2023 and delivered multi-bagger returns, with the share price rising nearly sevenfold from its IPO offer price of Rs 32. The stock reached a peak of Rs 310 in July 2024 but later corrected sharply to Rs 137 by March 2025. As a result, the shares are down 21% on a year-to-date basis.

IREDA's shareholding pattern

In just a few days post-listing, the share price surged nearly seven times from its IPO issue price of Rs 32, touching new highs above Rs 200.

The government has consistently held the largest stake of 75% since listing, while foreign investors hold 1.75% and mutual funds have a minimal stake of just 0.23%.

Since its IPO, the retail investor participation has grown significantly, with the number of shareholders rising from 1.35 million to 2.65 million. Their collective holding has increased from 15.25% to 20.25%.