IREDA's Successful QIP and IPO Highlight Robust Investor Confidence in India's Renewable Energy Sector

1 min read     Updated on 29 Jul 2025, 05:44 PM
scanxBy ScanX News Team
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Overview

Indian Renewable Energy Development Agency Ltd. (IREDA) raised Rs 2,005.90 crore through a Qualified Institutional Placement (QIP) in June, issuing shares at Rs 165.14 each. The QIP attracted major investors like Life Insurance Corporation (50% stake), Morgan Stanley (9.12%), and Societe Generale (8.98%). In November 2023, IREDA's IPO debuted with an 87.5% premium over the issue price of Rs 32.00 per share. The company's continued strong performance in the secondary market indicates ongoing investor interest in India's renewable energy sector.

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*this image is generated using AI for illustrative purposes only.

Indian Renewable Energy Development Agency Ltd. (IREDA) has demonstrated strong investor confidence in India's renewable energy sector through its recent successful qualified institutional placement (QIP) and initial public offering (IPO), according to Union Minister Shripad Yesso Naik.

Impressive QIP Performance

IREDA raised a substantial Rs 2,005.90 crore through its QIP in June. The company issued fresh equity shares at Rs 165.14 per share, offering a 5% discount from the floor price of Rs 173.83. This successful fundraising effort underscores the growing interest in renewable energy financing in India.

Notable Investor Participation

The QIP attracted a diverse range of marquee investors, showcasing both domestic and foreign interest in IREDA:

Investor Stake
Life Insurance Corporation 50.00%
Morgan Stanley 9.12%
Societe Generale 8.98%

This strong participation from institutional investors reflects confidence in IREDA's business model and the potential of India's renewable energy sector.

Stellar IPO Performance

IREDA's success extended to its initial public offering as well. In November 2023, IREDA shares made a remarkable debut on the stock market, listing at a premium of 87.5% over the issue price of Rs 32.00 per share. This impressive listing reflects the high level of investor optimism surrounding renewable energy financing and confidence in IREDA's financial health and growth prospects.

Market Performance

Following its listing, IREDA's stock has continued to show robust gains in the secondary market. This sustained performance indicates ongoing investor interest and positive sentiment towards the company and the broader renewable energy sector in India.

Implications for India's Renewable Energy Sector

The success of IREDA's fundraising efforts and strong market performance sends a positive signal about the future of renewable energy in India. It suggests that investors see significant potential in the sector and are willing to support companies that facilitate the growth of renewable energy projects.

As IREDA continues to play a crucial role in financing renewable energy initiatives, its market success could potentially lead to increased funding availability for green energy projects across the country, further accelerating India's transition to cleaner energy sources.

Historical Stock Returns for IREDA

1 Day5 Days1 Month6 Months1 Year5 Years
+1.11%-2.12%-11.62%-23.23%-38.34%+145.50%

IREDA Plans Rs 2,500-3,000 Crore QIP Fundraise, Reports Strong Q1 Performance

1 min read     Updated on 22 Jul 2025, 09:27 AM
scanxBy ScanX News Team
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Overview

IREDA aims to raise Rs 2,500-3,000 crore through a QIP this fiscal year, following a successful IPO and recent QIP. The company has recovered over Rs 100 crore from Gensol Engineering, with insolvency proceedings initiated. IREDA's Q1 results show significant growth, with operating profit up 49% and total income up 30%. The company's outstanding loan book reached Rs 79,941.00 crore, and its net worth rose to Rs 12,402.00 crore. CBDT has notified IREDA bonds as 'long-term specified assets', offering tax benefits to investors from July 2025.

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*this image is generated using AI for illustrative purposes only.

Indian Renewable Energy Development Agency (IREDA) is set to raise between Rs 2,500 crore and Rs 3,000 crore through a qualified institutional placement (QIP) this fiscal year. This move follows the company's successful initial public offering (IPO) in December 2023 and a recent QIP that raised Rs 2,005 crore.

Government Stake Dilution

The planned QIP will result in an additional 3.76% dilution of the government's stake in IREDA. This comes after the government already diluted a 3.24% stake in the previous QIP last month.

Gensol Engineering Recovery

IREDA has made significant progress in recovering funds from the crisis-hit Gensol Engineering. The company had an exposure of Rs 700 crore to Gensol and has successfully recovered over Rs 100 crore through bank guarantees and fixed deposit withdrawals. In response to the situation, IREDA filed a petition leading to the National Company Law Tribunal admitting corporate insolvency proceedings against Gensol Engineering.

It's worth noting that the Securities and Exchange Board of India (SEBI) has barred Gensol Engineering and its promoters from participating in securities markets due to fund diversion and governance lapses.

Financial Impact and Growth

The upcoming fundraise is expected to provide IREDA with a substantial borrowing power of Rs 30,000 crore for the current fiscal year. This financial boost comes on the heels of impressive first-quarter results:

Financial Metric Year-on-Year Growth
Operating Profit 49%
Total Income 30%
Outstanding Loan Book 26%
Net Worth 36%

IREDA's outstanding loan book reached Rs 79,941.00 crore, with significant contributions from solar, wind, and emerging technologies. The company's net worth rose to Rs 12,402.00 crore.

Tax Benefits for Investors

In a move that could attract more investors, the Central Board of Direct Taxes (CBDT) has notified IREDA bonds as 'long-term specified assets' under Section 54EC. This designation will enable capital gains tax exemption for investors, effective from July 2025.

As IREDA continues to strengthen its position in the renewable energy financing sector, these developments signal a positive outlook for the company's growth and its role in supporting India's clean energy initiatives.

Historical Stock Returns for IREDA

1 Day5 Days1 Month6 Months1 Year5 Years
+1.11%-2.12%-11.62%-23.23%-38.34%+145.50%
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