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Informist, Friday, Apr. 25, 2025

 

--Govt sources: IREDA likely to raise up to INR 20 bln via FPO in next 3 mos

--Govt sources: IREDA recently held roadshows to raise fresh equity capital

 

By Sagar Sen, Priyasmita Dutta, and Shubham Rana

 

NEW DELHI - State-owned financial institution Indian Renewable Energy Development Agency Ltd. aims to raise up to INR 20 billion through a follow-on public offer in the next three months, two senior finance ministry officials said. The company had received board approval in August to raise equity capital of up to INR 45 billion.  

 

The company recently held roadshows with potential investors on the proposed equity capital raising, one of the officials told Informist. "The fresh capital will help the company in leveraging its books and increase its borrowing to finance renewable projects," the official added. The company has already held meetings with the Ministry of New and Renewable Energy and Department of Investment and Public Asset Management.

 

The company did not respond to an e-mail asking if it held roadshows for a potential follow-on public offer.

 

In FY25, the company sanctioned loans of INR 474.53 billion, up 27% on year, while disbursements were INR 301.68 billion, up 20% on year. Its debt equity ratio at the end of last financial year was 6.31, up from 5.80 at end of FY24. At 0958 IST, shares of the company traded 3.5% lower from the previous close at INR 169 on the National Stock Exchange.

 

In August, the board of IREDA gave an in-principle approval to raise equity capital aggregating up to INR 45 billion in one or more tranches through further public offer or qualified institutional placement or rights issue or preferential issue or any other mode or combination, subject to the approval from the government and other regulatory approvals.

 

The government had listed IREDA in FY24 and had got INR 8.58 billion from the IPO. The IPO consisted of a fresh issue of up to 403.16 million shares and an offer for sale of up to 268.78 million shares by the government, which brought down its shareholding to 75%. The stock had listed on the bourses at INR 50, against the issue price of INR 32 for shares with a face value of INR 10.

 

The second official said that the company announced its earnings for FY25 as early as it could so that it can begin with the roadshows and investor engagement exercise. "This will help the company in raising equity within the first quarter," the official said.

 

The company reported a net profit of INR 16.99 billion for FY25, up 36% on year. The total income for the year was INR 67.55 billion, up 36% from the previous year. Its net interest margin in FY25 was 3.27%, significantly higher than 2.85% a year ago.

 

The company had borrowed INR 252 billion in FY25. In its total outstanding borrowing profile of INR 647.40 billion, 87% was raised from the domestic market and the remaining from overseas.  End

 

Edited by Vandana Hingorani

 

 

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