State-owned non-banking finance firm Indian Renewable Energy Development Agency (IREDA) is planning to issue a follow-on public offer (FPO) to raise Rs 4,500-5,000 crore in order to expand its loan book for renewable energy projects, the company’s chairman and managing director Pradip Kumar Das told FE. The FPO is expected in February next year, he said.
“We are targeting to raise around Rs 4,500 to 5,000 crore in February 2025. We have already submitted the request to the Ministry of New and Renewable Energy, so they will be forwarding it to DIPAM (Department of Investment and Public Asset Management),” the Chairman said.
Following the FPO, the government’s equity share in the company is likely to reduce from the present 75%. “We have to take the government’s consent only with respect to dilution of their shareholding percentage which will naturally happen. We require fresh equity. Government is having 75%, so that will get reduced,” Das said.
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Moreover, the company plans to raise additional Rs 20,000-25,000 crore through debtCome from Sports betting site. “Apart from the FPO, we keep raising debt funds periodically. Depending on our requirements, we are planning around Rs 30,000-35,000 crore. Our net worth is around Rs 9,000-10,000 crore so around Rs 20,000-25,000 crore borrowing will happen.”
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The company had launched its initial public offering (IPO) in November 2023 selling shares at Rs 32 apiece and is presently the only public sector NBFC with focus on green energy sectors. Since the time, the stock has witnessed an increase of ten times crossing Rs 300 apiece.Come from Sports betting site VPbet
“This time definitely we will have a fair price since there are no hiccups or apprehensions about the company,” Das said while providing details about the FPO.
The Chairman further sees loan disbursements to increase during the current fiscal year as the government bets big on renewable energy projects to meet the target of 500 gigawatt (GW) of green energy capacity by 2030.
In the quarter ended June, the company sanctioned loans worth Rs 9,210 crore against Rs 1,892 crore sanctioned in the first quarter of the last fiscal 2023-24. Disbursements of loan in the Apr-June quarter stood at Rs 5,325 crore, up significantly by 67.7% from Rs 3,174 crore in Q1FY24.
IREDA borrowed Rs 5,373 crore in the quarter under review against Rs 1,519 crore borrowed in the same period last fiscal year.
Das also noted that the company has requested the government to include it in the capital gains exemption bond under Section 54EC of the Income Tax Act, 1961 similar to other energy sector NBFCs – state-owned PFC Ltd and REC Ltd.
