Government-owned lender, Indian Renewable Energy Development Agency (IREDA), has raised ₹20.06 billion (~$234.71 million) through qualified institutional placement (QIP) of shares.

The company issued a total of 121,466,562 equity shares at a price of ₹165.14 (~$1.93) per share, which includes a premium of ₹155.14 (~$1.82). The issue price was set at a 5% discount, or ₹8.69 (~$0.10), on the floor price.

Among the participants, the Life Insurance Corporation of India emerged as the largest investor in the QIP, securing 60,733,280 shares, comprising half of the total allotment.

Other notable investors included Societe Generale – Overseas Direct Investment (ODI), which received 10,910,257 shares, representing 8.98% of the total issue. Morgan Stanley Asia (Singapore) PTE – ODI was allotted 11,078,144 shares, amounting to 9.12%, while Vikasa India EIF I Fund received 6,234,433 shares, equivalent to 5.13% of the placement.

The latest equity issuance is part of IREDA’s broader plan to raise ₹50 billion (~$588.24 million) through QIPs, with the strategic goal of limiting the Government of India’s shareholding dilution to a maximum of 7% in the post-issue paid-up equity capital.

In addition to equity fundraising, IREDA has been actively diversifying its capital sources. In March 2025, the agency signed a loan agreement with the Tokyo branch of the State Bank of India to raise JPY26 billion (~$172 million), including a greenshoe option of JPY10 billion (~$66.2 million).

IREDA has also made progress in the domestic debt market. It recently issued its first perpetual bonds worth ₹12.47 billion (~$144.5 million) at an annual coupon rate of 8.4%. Further boosting its financial position, IREDA received ₹244.8 million (~$2.6 million) from the Income Tax Department as partial relief for the assessment year 2011–12 related to prior disallowances.

In March this year, IREDA raised ₹9.1 billion (~ $106.16 million) through the issuance of privately placed subordinated Tier II bonds. The proceeds from this issuance are intended to augment the agency’s Tier II capital and help it improve its overall net worth and capital-to-risk weighted assets ratio.