Ireda QIP: Government Allows Dilution Of Up To 7%

The Union government approved on Wednesday a proposal to raise funds via share sale to institutional investors of up to 7% equity in Indian Renewable Energy Development Agency Ltd.

The Department of Investment and Public Asset Management, which comes under the Ministry of Finance, conveyed the approval for the dilution of the government's stake in Ireda through the qualified-institutions-placement route in one or more tranches, according to an exchange filing.

The company plans to raise approximately Rs 25,000 crore through the debt market and Rs 4,500 crore via equity in the current financial year, Chairperson Pradeep Das said last month.

"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," Das had said.

The company's sanctioned loans surged to Rs 9,136 crore in the quarter-ended June. It recorded loan disbursements of Rs 5,320 crore in the June quarter, a growth of 68% in comparison to Rs 3,174 crore in the year-ago period.

The total loan book outstanding as of June was at Rs 63,150 crore, up 34% over Rs 47,207 crore in April–June in the previous fiscal.

Shares of Ireda closed 0.11% lower at Rs 227.5 apiece on the BSE ahead of the announcement, compared to a 0.16% decline in the benchmark Sensex.