Indian Renewable Energy Development Agency Limited (IREDA) has gained the approval of the Department of Investment and Public Asset Management (DIPAM) to raise an estimated Rs 45 billion through issue of fresh equity shares. The funds will be raised through qualified institutions placement route and a 7 per cent dilution of Government of India’s shareholding in IREDA. This will be completed in multiple tranches, and on a post-issue basis. The recommendation given by a high-level committee formed the basis for the approval of DIPAM.
The objective of the raising of funds is to create a stronger capital base for IREDA and empower it to increase its funding for renewable energy projects. This will help further accelerate India’s transition to clean energy.
Earlier this month, IREDA signed a MoU with SJVN Limited and GMR Energy Limited for the establishment of a 900 MW Upper Karnali hydro-electric project in Nepal. They also agreed to raise Rs 45 billion through further public offer, qualified institutional placement, rights issue, preferential issue or other permitted modes and combinations.
