Ireda board gives green light to Rs 5,000 crore fundraising through QIP
Notable because
Public-sector undertaking (PSU) lender, the Indian Renewable Energy Development Agency (IREDA), received board approval to raise INR 5000 crore by issuing shares through the qualified institutional placement (QIP) route. This comes amid a series of fundraising activities by the company in the last few years, including an initial public offering (IPO) in 2023 and fundraising worth INR 29,500 crore via a mix of debt and equity in 2024. This development reinforces the company’s commitment to upscaling lending towards low-carbon technologies.
What to look out for in the months ahead
Companies typically pursue the QIP route to rapidly raise capital to either fund expansion plans or repay debt. How does IREDA plan to utilise these funds? To what extent might this step lead to increased lending towards RE?