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The Indian Renewable Energy Development Agency (IREDA) recently raised nearly INR 2,006 crore through a Qualified Institutional Placement (QIP), following the remarkable response to its IPO last year. The move has drawn significant participation from heavyweight investors, including LIC and global financial firms such as Morgan Stanley and Societe Generale. The strong market performance of IREDA's stock post-listing reflects widespread investor optimism around India's renewable energy push. The developments underscore the growing global and domestic confidence in the company's business model and the sector's long-term growth prospects.
Investor confidence in India's renewable energy financing ecosystem has surged, as demonstrated by the Indian Renewable Energy Development Agency's (IREDA) recent success in raising INR 2,005.9 crore through a Qualified Institutional Placement (QIP) of fresh equity shares. The transaction, which followed the company's highly successful IPO, marks a notable endorsement of IREDA's positioning in the green energy sector. Advertisement
Minister of State for New and Renewable Energy, Shripad Yesso Naik, emphasized in a recent address to the Rajya Sabha that the seamless execution of the QIP and the earlier enthusiastic IPO subscription point to the trust investors have in both IREDA and India's broader renewable energy journey.
Life Insurance Corporation (LIC) led the institutional interest, subscribing to 50% of the QIP. The involvement of key global financial entities such as Morgan Stanley (9.12%) and Societe Generale (8.98%) further highlights international faith in IREDA's strategy and India's green energy growth prospects. This marks a significant signal from global markets that India is viewed as a reliable and promising destination for sustainable infrastructure financing.
The QIP was priced at INR 165.14 per equity share, reflecting a 5% discount from the floor price of INR 173.83. Despite this discount, investor enthusiasm remained high, reinforcing IREDA's credibility and long-term financial viability.
IREDA's market performance has mirrored this confidence. Since listing at INR 32 per share during its IPO in late 2023, the company's stock has posted strong gains. On debut, it closed with an impressive 87.5% premium over the issue price showing sustained secondary market strength. This performance is not only a reflection of IREDA's healthy financials and asset quality, but also its commitment to transparent governance and its well-charted growth trajectory in India's energy transition.
IREDA, a key financial institution under the Ministry of New and Renewable Energy, has long played a pivotal role in supporting and financing renewable energy projects across India. Its transformation into a listed company with consistent institutional support positions it strongly to accelerate India's energy goals.
Source PTI
5th Jun, 2025
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