The Indian Renewable Energy Development Agency (IREDA) has successfully raised ₹2,005.90 crore through a Qualified Institutional Placement (QIP) of equity shares. This fundraising marks a significant step for IREDA as it seeks to strengthen its capital base and boost funding for renewable energy projects in India.
In an official exchange filing on June 11, IREDA announced the closure of its QIP issue, wherein 12.15 crore equity shares were allotted at an issue price of ₹165.14 per share. This price reflects a discount of over 4.5% from the floor price of ₹173 per share, making it an attractive entry point for institutional investors.
LIC Emerges as the Largest Investor
The highlight of this QIP was the participation of the Life Insurance Corporation of India (LIC), which subscribed to 50% of the total offer. LIC invested nearly ₹1,003 crore, making it the largest stakeholder in this fundraising round.
“LIC was allotted over 6 crore shares, underlining its strong belief in IREDA’s long-term growth and clean energy vision.”
Apart from LIC, other prominent institutional investors who received more than 5% allocation include Societe Generale, Morgan Stanley Asia (Singapore) PTE, and Vikasa India EIF I Fund.
Major Allottees and Allocation Breakdown
Here’s a snapshot of the major investors and their share of the QIP:
| Allottees | Shares Allotted | Percentage of Total Offer |
|---|---|---|
| Life Insurance Corporation of India | 6,07,33,280 | 50% |
| Societe Generale – ODI | 1,09,10,257 | 8.98% |
| Morgan Stanley Asia (Singapore) PTE – ODI | 1,10,78,144 | 9.12% |
| Vikasa India EIF I Fund | 62,34,433 | 5.13% |
These strategic allocations reflect growing global and domestic investor confidence in India’s renewable energy space, especially in key government-backed institutions like IREDA.
Equity Capital Structure Post-QIP
With the completion of the QIP allotment, IREDA’s paid-up equity share capital has increased substantially. The capital has grown from ₹26,87,76,47,060 (comprising 2,68,77,64,706 equity shares) to ₹28,09,23,12,680 (comprising 2,80,92,31,268 equity shares). This capital boost is expected to provide IREDA with enhanced financial muscle to lend more actively in the renewable sector.
“The increased equity capital will support IREDA’s future lending operations and expand its footprint in clean energy financing,” the company noted.
Merchant Bankers and Fundraising Plans
IREDA had earlier set out a plan to raise up to ₹5,000 crore through the QIP route, with a floor price of ₹173 per share. Although the current round raised around ₹2,006 crore, the participation from marquee institutional investors has laid a strong foundation for potential future tranches.
The QIP was managed by a team of top-tier merchant bankers, including:
IDBI Capital Market Services
BNP Paribas
SBI Capital Markets
Emkay Global Financial Services
Motilal Oswal Investment Advisors
These firms played a key role in managing and executing the QIP successfully, ensuring wide participation and a smooth subscription process.
A Big Step for Renewable Energy Financing in India
This successful QIP marks a significant milestone for IREDA, which has been at the forefront of financing renewable energy initiatives across India. With the fresh capital infusion, the company is well-positioned to scale up its operations, support green energy developers, and help India move closer to its clean energy goals.
The involvement of large institutional investors like LIC and global names such as Morgan Stanley and Societe Generale demonstrates strong faith in both IREDA’s performance and the overall potential of India’s renewable energy sector.
IREDA’s fundraising success not only strengthens its balance sheet but also reflects the growing investor appetite for clean energy opportunities.
