The Indian Renewable Energy Development Agency (IREDA) is set to issue a follow-on public offering (FPO) within the current financial year to bolster funding for renewable energy initiatives. This move aims to raise capital to support the expansion of sustainable energy projects, reinforcing IREDA’s commitment to green energy development in India.
IREDA, a public sector non-banking financial company (NBFC) under the Ministry of New and Renewable Energy (MNRE), successfully launched its initial public offering (IPO) in December 2023, following two unsuccessful attempts in the past decade. The company, which debuted on Dalal Street, plans to raise ₹24,200 crore this financial year through the FPO.
Chairman and Managing Director P.K. Das highlighted the need for more equity capital to support the growing size of green energy projects. “Raising debt is not a problem for us. The project size in green energy is getting bigger, and we intend to support the sector’s growth. For this, we believe that an FPO is the route to raise more equity capital,” Das stated. While the specific amount for the FPO has not been disclosed, it aligns with the company’s growth prospects.
Das indicated that IREDA aims to disburse loans exceeding ₹30,000 crore this fiscal year, up from ₹25,089 crore in 2023-24. Last month, the board approved a borrowing plan of ₹24,200 crore for 2024-25, which includes bonds, perpetual debt instruments, term loans, commercial papers, and external commercial borrowings.
Additionally, IREDA has established a subsidiary in GIFT City, Gujarat, to engage with green energy sectors with export potential, focusing on solar and green hydrogen manufacturing.
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