IREDA Shares Gain on DIPAM Approval for Fund Raise Shares of Indian Renewable Energy Development Agency (IREDA) have risen over 3% on Thursday after the Department of Investment and Public Asset Management (DIPAM) approved the alternative mechanism for the company’s proposed ₹4,500 crore fund raise.
DIPAM Allows Up to 7% Government Stake Dilution
Based on the recommendation of the high-level committee, DIPAM has allowed IREDA to dilute up to 7% of the government’s shareholding through the issue of fresh equity via the Qualified Institutional Placement (QIP) route. The dilution will be based on the post-issue paid-up equity share capital of IREDA and may be done in one or more tranches.
IREDA’s Fund Raise Proposal
On August 29, 2024, IREDA had approved a fund raising proposal of up to ₹4,500 crore through various methods, including a Follow-on Public Offer (FPO), QIP, or a preferential issue. As of June 30, 2024, the government holds a 75% stake in IREDA.
CMD’s
September 6, IREDA CMD Pradip Kumar Das mentioned that the company had requested the government to allow an issue of fresh equity and reduce its stake by up to 10%. Das also stated that if IREDA manages to raise ₹4,500 crore, its Capital to Risk (Weighted) Assets Ratio (CRAR) will increase to 25%, indicating a strong financial position.
IREDA Stock Performance
IREDA shares are currently trading 3% higher at ₹234.3. Despite a 30% correction from its recent peak of ₹310, the stock has more than doubled in value this year, gaining 123%.
