IREDA gets nod for ₹4,500 crore QIP, shares surge

19 Sep 2024 , 01:08 PM

Shares of the Indian Renewable Energy Development Agency (IREDA) rose 4.4% on the BSE today, reaching a high of Rs 237.50 after the business stated that it has received approval from the Union government to raise Rs 4,500 crore through a Qualified Institutions Placement (QIP) of fresh equity.

“Further to our intimation letter dated August 29, 2024 regarding the In-principle approval of the Board of Directors of IREDA for raising funds by way of equity capital for an amount aggregating upto ₹4500 Crore in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or a combination thereof,” the business wrote in its submission to the exchanges .

This QIP permits them to raise capital by issuing new shares to institutional investors such as banks and mutual funds. The government, IREDA’s largest stakeholder, plans to reduce its position by up to 7% by issuing new shares.

Earlier, IREDA’s board recommended funding Rs 4,500 crore through a variety of channels, including an FPO, rights issue, or preferential issue.

The company has now informed the exchanges that the Department of Investment and Public Asset Management (DIPAM) has given the go-ahead for the share sale, after permission from a high-level government committee.

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