IREDA Board approves fundraising plan for upto Rs 4,500 cr

IREDA has received an approval from its Board of Directors for raising funds to the tune of Rs 4,500 crore in one or more tranches

New Delhi: State-run Indian Renewable Energy Development Agency Limited (IREDA) said on Thursday that it has received an approval from its Board of Directors for raising funds to the tune of Rs 4,500 crore in one or more tranches. The PSU will raise the funds through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or combination, subject to the statutory or government approval.

In a regulatory filing to the stock exchanges, the PSU said, “The Board of IREDA accorded in-principle approval for raising equity capital for an amount aggregating upto Rs 4,500 Crore in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or a combination thereof, subject to the approval from the Govt of India and other statutory/regulatory approvals. The type of issue shall be decided subsequently.”

IREDA, which comes under the Ministry of New and Renewable Energy, is engaged in providing finance to renewable energy projects. The fundraising assumes significance as India has set an ambitious target of putting in place 500 GW of renewable energy by 2030 and needs to add about 50 GW capacity per annum to achieve the goal. IREDA shares closed at Rs 254.50 apiece on BSE on Thursday after the announcement, up 0.22 percent from the closing price of Rs 253.95 a day ago.