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IREDA Plans To Raise Fund of Rs 24,200 Cr Via FPO Issue

May 30, 2024

By: BlinkX Research Team

Indian Renewable Energy Development Agency is planning to raise equity capital and lending for renewables worth 24,200 crore rupees in FY25. The company is aiming to raise capital through the issue of a follow-on public offering (FPO).

Key Takeaways from the IREDA FPO:

• The Indian Renewable Energy Development Agency is planning to issue a follow-on public offer.
• The issue will help raise equity capital and lending for renewables of nearly Rs 24,200 crore in FY25.
• Loan disbursements will increase during the current fiscal year as the government bets big on renewable energy projects.

Earlier, the company launched its initial public offering (IPO) in December 2023 and is presently the only public sector NBFC focusing on green energy sectors.

IREDA chairman and managing director Pradip Kumar Das in a meeting tabled on Tuesday stated that the size of projects in green energy is enlarging, and the company intends to support the sector’s growth. As a result, the company believes FPO is the route to raise more equity capital.

However, IRDEA did not specify the amount of FPO and its timeline. “It is difficult to tell whether it would be this fiscal year or next,” Das said.

The chairman further sees loan disbursements to increase during the current fiscal year as the government has bigger bets on renewable energy projects.

About the Indian Renewable Energy Development Agency Limited: 

The Indian Renewable Energy Development Agency Limited was established on 1987 March 11, as a Public Limited Government Company under the Companies Act, 1956. The company promotes, develops, and extends financial assistance for renewable energy and energy efficiency conservation projects. IREDA has been awarded ‘Navratna’ status by the Ministry of New and Renewable Energy (MNRE) in 2024. 

Read More About Indian Renewable Energy Development Agency Share Price Here!