IREDA Plans To Raise Rs 4,500 Crore For Renewable Energy Expansion

State-owned Indian Renewable Energy Development Agency Ltd. (IREDA) is gearing up for a major fundraising drive, aiming to raise up to ₹4,500 crore to strengthen its operations and support green energy growth.

Speaking to NDTV Profit, Chairman and Managing Director of IREDA, Pradip Kumar Das, outlined the company’s strategy and fundraising plans for future expansions. He also highlighted IREDA's role in the growth of the country’s renewable energy sector.

“We have been in the green finance space for 37 years and are currently the largest pure-play green finance company in the country. In the past four years alone, our loan book has grown threefold,” Das said. He attributed this to various factors, including government support and initiatives such as the IPO in November 2023, which significantly boosted the company’s net worth.

Das said that IREDA’s primary constraint in recent years was its net worth. “The net worth was stagnant for several years, but with the government’s dividend exemption and our IPO, we have successfully increased our net worth to Rs 9,100 crore,” he added. This has enabled IREDA secure a ‘Triple A’ rating from multiple agencies. 

On fundraising, Das said IREDA was looking to secure Rs 4,500 crore, which would be discussed at the upcoming board meeting. "We are looking at various fundraising options, including OFS or QIP, and will revisit the figure as we approach the market," he said.

Looking forward, he highlighted the strong demand for renewable energy investments. "The government’s plan involves installing 500 gigawatts of non-fossil capacity, with an anticipated investment of around Rs 30 lakh crore. Out of this, Rs 21 lakh to Rs 22 lakh crore will be needed for capital expenditure, and half of that is expected to come to NBFCs like IREDA," he said.

Das added IREDA is set to capture 30%-35% of the NBFC share in this space.

On margins and lending profiles, Das said that while the company is focused on reducing borrowing costs, it is also cautious about not raising interest rates too high. "Despite the strong demand, increasing interest rates could make some projects unviable, potentially affecting the pace of the 500 GW capacity expansion," he said. "Our goal is to balance reducing borrowing costs while maintaining a qualitative asset book."