IREDA eyes $538.6m through new share offering

Under this, the Indian government will sell a 7% stake in the lender.

Indian Renewable Energy Development Agency Limited (IREDA) has been given the go signal to raise around $538.6m (INR4,500 crore) through fresh equity issue which will be used to fund renewable energy projects, boosting the country’s transition to clean energy.

In a statement, the lender said the approval was granted by the Department of Investment and Public Asset Management based on the recommendations of a High-Level Committee. 

The fundraising will be implemented through the Qualified Institutions Placement route, with a planned dilution of the Government of India’s shareholding in IREDA by up to seven percent on a post-issue basis, to be executed in one or more tranches.

IREDA said this transaction will strengthen its capital base, allowing it to scale its renewable energy financing.

“With fresh capital infusion, we will be better positioned to support India’s ambitious renewable energy goals and continue playing a pivotal role in financing clean energy projects across the country,” said Pradip Kumar Das, chairman and managing director of IREDA.

$1 = INR83.55