IREDA Raises ₹2,005.90 Crore via QIP to Boost Renewable Energy Funding
IREDA has raised ₹2,005.90 crore ($240 million) through a Qualified Institutions Placement to enhance its clean energy financing capabilities. The capital will help strengthen its lending capacity and support India’s renewable energy goals.
Government-owned Indian Renewable Energy Development Agency Ltd. (IREDA) under the Ministry of New and Renewable Energy (MNRE) raised ₹2,005.90 crore ($240 million) with Qualified Institutions Placement (QIP). The funds will be used to increase the agency's capacity to finance Indian renewable energy projects.
QIP, issued on 5 June 2025 and redeemed on 10 June 2025, comprised issue of 121.5 million equity shares of ₹10 each at offer price of ₹165.14 per share, at a discount of 5% of the floor price of ₹173.83 per share. Though costlier, the problem was favorably received by a representative sample of domestic and foreign Qualified Institutional Buyers (QIBs) like insurance companies, scheduled commercial banks, and foreign portfolio investors. Final subscription price was 1.34 times and acceptances received in proportion to final allotment size.
Such monies thus mobilised in the money will form part of IREDA's Tier-I capital, enhance its Capital Adequacy Ratio (CAR) and allow the agency to increase its lending capacity for clean energy projects. A positive CAR is a sign of financial health and provides strength to the risk-management of a finance institution. This QIP is succeeded by IREDA's first public issue in November 2023, which provided the agency with the green signal for the direction it has embarked upon to mobilize funds for the construction of green infrastructure.
IREDA attributed the smooth sailing of the QIP to government support and institutional backing. Officials at MNRE such as Union Minister Pralhad Joshi, Minister of State Shripad Naik, MNRE Secretary Santosh Kumar Sarangi, and the Department of Investment and Public Asset Management have been attributed with the agency's continuous capital schemes.
Funds from the QIP will be utilized to support renewable energy funding opportunities. These are solar, wind, biomass, hydro and other clean energy sector projects in line with India's growth strategy for renewable energy capacity and de-linkage from fossil fuels.
IREDA's core function is to mobilize funds for renewable energy and energy efficiency programs in India. The agency wants to contribute to its green book finance during the ongoing round of funding, which will enable India to meet its climate goals under international agreements such as the Paris Agreement.
The capital is also covered under India's overall plan to increase installed renewable energy capacity to 500 GW by 2030 as India shifts to a carbon-neutral economy. Government sector financing institutions such as IREDA are said to be contributing significantly in mobilizing the clean energy infrastructure finance gap, as private funding continues to be limited for early-stage or riskier initiatives.
Successful flotation of the QIP is a reflection of greater investor faith in the renewable energy sector as well as fiscal prudence of state-run green finance institutions. It also serves as an example for future rounds of raising finance since India is proceeding with scaling up its renewable energy plan.
Source: Press Information Bureau (PIB)
Photo Credit: PIB
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