Theranautilus Secures $1.2 Mn in Seed...
19 Nov 2024
The Indian Renewable Energy Development Agency (IREDA) is planning to raise approximately ₹4,500 to ₹5,000 crore through a Follow-on Public Offer (FPO) scheduled for February 2025. This initiative aims to expand its loan book for renewable energy projects, as stated by IREDA's Chairman and Managing Director, Pradip Kumar Das.
This FPO is a strategic move to enhance IREDA's financial capacity and support its mission to promote renewable energy projects across India.
- FPO Purpose : The funds raised will be utilized to support the growing demand for financing in the renewable energy sector, in line with the government's targets for green energy capacity.
- Government Stake : Following the FPO, the government's equity share in IREDA, currently at 75%, is expected to decrease. The necessary approvals for this dilution are being sought from the government.
- Financial Performance : IREDA has shown significant growth, with loan sanctions reaching ₹9,136 crore in the first quarter of FY2025, a nearly fivefold increase from the previous year. The company's loan book currently stands at ₹63,150 crore, reflecting a year-on-year growth of 33.77%.
- Debt Raising Plans : In addition to the FPO, IREDA plans to raise ₹20,000 to ₹25,000 crore through debt, aiming for a total borrowing of ₹30,000 to ₹35,000 crore to meet its operational needs.
- Stock Performance : IREDA's shares, which were initially offered at ₹32 during its IPO in November 2023, have surged significantly, currently trading around ₹197.45, marking an increase of nearly 80% in 2024.
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