Ireda to raise Rs 45 billion through FPO
Public sector non-banking financial company (NBFC) Ireda Limited plans to raise Rs 45 billion through a follow-on public offering (FPO). The company has scheduled a board meeting on August 29, 2024, to seek approval for the fundraising. The proposal includes raising funds via equity share capital through an FPO, Qualified Institutional Placement (QIP), Rights Issue, Preferential Issue, or other permitted methods.
Ireda, under the Ministry of New and Renewable Energy (MNRE), aims to raise Rs 242 billion in the 2024-25 financial year. This move aligns with its strategy to boost equity capital, following its IPO launch in December 2023. Ireda is the only listed public sector NBFC focused exclusively on green energy sectors.
Chairman and Managing Director P K Das noted that additional equity capital is necessary to support the growing green energy sector and to align with the company’s expansion plans. Ireda targets loan disbursals of over Rs 300 billion this fiscal year, up from Rs 250.89 billion in 2023-24.
In April 2024, Ireda’s board approved a borrowing plan of Rs 242 billion for 2024-25, including fundraising through bonds, perpetual debt instruments, term loans, commercial papers, and external commercial borrowings. Ireda is also seeking inclusion in the capital gains exemption bond under Section 54EC of the Income Tax Act, similar to peers like PFC Ltd and REC Ltd.
Ireda recently established a subsidiary in Gift City, Gujarat, and reported a 44.2% increase in net worth to Rs 85.59 billion as of March 31, 2024.