Lok Sabha Question No. 2816 (UNSTARRED), answered on 2025-08-06
Subject: Raising of Funds by IREDA
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Vijay Baghel, Shri Ananta Nayak

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 2816

ANSWERED ON 06.08.2025

## RAISING OF FUNDS BY IREDA

2816. SHRI VIJAY BAGHEL SHRI ANANTA NAYAK

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether Indian Renewable Energy Development Agency (IREDA) has raised funds through Qualified Institutions Placement (QIP);
- (b) if so, the issue price and discount offered;
- (c) the name of the major institutional investors participated in the QIP including LIC and other investors along with their respective allocations;
- (d) the manner in which funds raised likely to be utilised to strengthen IREDA's capital base and to support green energy financing;
- (e) whether the actions immediately after IREDA's IPO indicate strong confidence of investors in India's renewable energy sector; and
- (f) if so, the details of key indicators thereof?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK)

- (a)  Yes,  IREDA has raised funds of around ₹ 2005.9 crores by issuance of fresh  equity shares through Qualified Institutions Placement (QIP) route in June, 2025.
- (b) The issue price was ₹ 165.14 per equity share. The discount offered was ~ 5.00% on the floor price (₹173.83) amounting to ₹ 8.69 per equity share.
- (c) The major investors to whom allotment (more than 5% of the QIP offerings) was made are as under:
- (d) The funds raised through QIP issue were added to the Tier-1 capital of the Company, thereby boosting  the  Capital  to  Risk  (Weighted)  Assets  Ratio  (CRAR).  The  CRAR  of  the  Company increased from 17.77% as on March 31, 2025 to 19.58% as on June 30, 2025 majorly due to increase in Tier-1 capital from the QIP raising. As per the objects of the Issue the net proceeds raised from the QIP were used for onward lending towards renewable energy projects and general corporate purpose.

|   Sr. No. | Name of the Allotees                       |   %allotment of the Issue size |
|-----------|--------------------------------------------|--------------------------------|
|         1 | Life Insurance Corporation of India        |                          50    |
|         2 | Societe Generale - ODI                     |                           8.98 |
|         3 | Morgan Stanley Asia (Singapore) PTE. - ODI |                           9.12 |
|         4 | Vikasa India EIF I Fund                    |                           5.13 |

(e)&(f) The timing and successful execution of IREDA's QIP after its IPO underscores a high level of investor confidence in the company and India's renewable energy sector. Following listing at an issue price of ₹32 per share, IREDA's stock has shown robust listing gains and continued strength in the secondary market which reflects both investor's optimism around renewable energy financing and confidence in IREDA's financials , asset quality, growth trajectory, robust and transparent corporate governance.

Key indicators that illustrate the robust investor sentiment include:

- a.  The  QIP  was  subscribed  by  marquee  investors  like  LIC  which  reinforces  the  long-term institutional confidence in IREDA's business model and sectoral growth.

b.    The  inclusion  of  global  financial  institutions  like  Morgan  Stanley  and  Societe  Generale  as significant allottees shows that foreign investors also view IREDA as an attractive player in India's renewable energy financing space.

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