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IREDA will launch another public offering to support the development of renewable energy

Posted on by darion

Representative image. Source: Canva

The Indian Renewable Energy Development Authority (IREDA) is set to launch another public offering (FPO) in the current financial year to increase financing for renewable energy initiatives. The move is aimed at raising capital to support the development of sustainable energy projects, strengthening IREDA’s commitment to green energy development in India.

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IREDA, a public sector non-banking financial company (NBFC) under the Ministry of New and Renewable Energy (MNRE), after two failed attempts in the last decade, successfully conducted its initial public offering (IPO) in December 2023. The company, which debuted on Dalal Street, plans to raise ₹24,200 crore through FPO this financial year.

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Chairman and Managing Director PK Das stressed the need to increase equity capital to support the growing size of green energy projects. “Increasing debt is not a problem for us. The size of green energy projects is increasing, and we intend to support the development of the sector. Therefore, we believe that FPO is a way to raise more equity capital,” Das said. While the specific FPO amount has not been disclosed, it is in line with the company’s growth prospects.

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Das indicated that IREDA aims to disburse loans of over ₹ 30,000 crore this fiscal year, up from ₹ 25,089 crore in 2023-24. Last month, the board approved a ₹24,200-crore borrowing plan for 2024-25, which includes bonds, perpetual debt instruments, term loans, commercial paper and external commercial loans.

Additionally, IREDA has established a subsidiary in GIFT City, Gujarat to partner with green energy sectors with export potential, focusing on solar and green hydrogen production.