IREDA Plans To Raise ₹5,000 Cr Through FPO In Feb 2025: Report

The Indian Renewable Energy Development Agency (IREDA) is set to raise nearly ₹5,000 crore via a follow-on public offer (FPO) in February 2025.

What Happened: IREDA intends to use the funds raised to expand its loan book for renewable energy projects, as per a report by The Financial Express. The proposal is currently with the Ministry of New and Renewable Energy, which will pass it on to the Department of Investment and Public Asset Management (DIPAM).

Following the FPO, the government’s equity share in IREDA is likely to drop from the current 75%. The company also has plans to raise an additional ₹20,000 crore to ₹25,000 crore through debt. “Apart from the FPO, we keep raising debt funds periodically,” IREDA’s chairman and managing director, Pradip Kumar Das told the publication.

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IREDA, which primarily focuses on the green energy sector, launched its initial public offering (IPO) in November 2023. Since then, the stock has seen a tenfold increase, crossing ₹300 per share.

Das also mentioned that the company has requested the government to include it in the capital gains exemption bond under Section 54EC of the Income Tax Act, 1961, similar to other energy sector NBFCs.

IREDA’s Q1 results showed a 30% YoY increase in net profit to ₹383 crore and a 32% growth in revenue to ₹1,501 crore. However, the net interest margin for the June quarter stood at 3.3%, slightly lower than the 3.4% posted in the March quarter.

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