Shares of the Indian Renewable Energy Development Agency (IREDA) jumped 4.4 per cent on the BSE today, reaching a high of Rs 237.50 after the company announced it received approval from the Union government to raise Rs 4,500 crore through a Qualified Institutions Placement (QIP) of fresh equity.
The company informed the exchanges that the Department of Investment and Public Asset Management (DIPAM) gave the green light to go ahead with the share sale after receiving approval from a high-level government committee.
The fundraise, approved by the Alternative Mechanism based on recommendations from a High-Level Committee, will result in a dilution of the government’s stake in IREDA by up to 7 per cent of the company’s post-issue paid-up equity, as a result of the fresh share issue.
The capital infusion, to be executed in one or more tranches, follows an earlier in-principle approval from IREDA’s Board of Directors in August 2024, which considered multiple fundraising options, including a Further Public Offer (FPO), Rights Issue, or Preferential Issue.
The Government of India holds 75 per cent equity stake in IREDA as of the last update. IREDA has a total paid-up equity and issued capital of Rs 2,284.6 crore, in 228.46 crore shares of face value of Rs 10 each.
The company had reported a net profit of Rs 384 crore for the quarter ended June 2024, a 30 per cent uptick over Rs 295 crore reported in the year-ago period, while the revenue from operations stood at Rs 1,502 crore in the quarter as against Rs 1,144 crore logged in the corresponding quarter of the previous financial year.
The shares of IREDA have surged 122 per cent in the current calendar year while in the last 6 months, the shares have increased by 80.40 per cent.
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