Clean Energy Financing Initiatives

The Indian Renewable Energy Development Agency (IREDA) has successfully raised Rs 2,005.90 crore through a Qualified Institutions Placement (QIP) aimed at reinforcing its capacity to finance renewable energy projects in India. The offering involved the issuance of 12.15 crore equity shares at Rs 165.14 per share—reflecting a 5% discount to the floor price—and was oversubscribed, achieving a subscription rate of 1.34 times over the base issue size. The funds obtained through this share sale are expected to enhance IREDA’s Tier-I capital and overall Capital Adequacy Ratio, thereby bolstering its ability to support clean energy initiatives across multiple renewable sectors.

This capital infusion comes as part of IREDA’s broader strategy to scale up its financing activities for clean energy projects, including solar, wind, biomass, and small hydro power. The successful fundraising, which followed its initial public offering in November 2023, signals robust investor confidence as well as strong backing from governmental stakeholders. By strengthening its financial foundation, IREDA positions itself to play a more significant role in advancing India’s transition towards a sustainable energy future while contributing to the nation’s clean energy and decarbonization objectives.

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