- Indian Renewable Energy Development Agency approved Rs 2,994 crore fundraise via QIP.
- Fundraise will limit government shareholding dilution to no more than 3.76% post-issue.
- Fundraise requires shareholder and other statutory approvals before proceeding.
Indian Renewable Energy Development Agency Ltd.'s board of directors approved a fundraise of up to Rs 2,994 crore via qualified institutional placements, according to an exchange filing on Friday.
The company added that the fundraise will take place only up to the extent that the shareholding of the President or the government does not dilute more than 3.76% of the post-issue paid-up equity share capital of the company.
"The raising of funds through the issuance of equity shares through a qualified institutions placement (“QIP”) in one or more tranches, under applicable laws, for an aggregate amount of up to Rs 2,994 Crore (Rupees Two Thousand Nine Hundred Ninety Four Crore Only), provided that the shareholding of the President of India, acting through the Ministry of New and Renewable Energy, Government of India, does not dilute more than 3.76% of the post-Issue paid-up equity share capital of the Company," the filing stated.
Moreover, the fundraise is also subject to approval of the shareholders among other statutory approvals.
IREDA Q3 Recap, Business Health Check
IREDA's Q3 net profit saw a sharp jump of 37% on a year-on-year basis to Rs 585 crore. Total income for IREDA grew 26% to Rs 2,140 crore vs Rs 1,699 crore in the year-ago period.
In January, IREDA had reported a strong Q3 business update, registering an uptick in loan disbursements, up 44% year-on-year to Rs 24,903 crore from Rs 17,236 crore. Loans sanctioned also saw a 29% year-on-year increase to Rs 40,100 crore, from Rs 31,087 crore. Meanwhile, the financier's loan book also rose 28% year to Rs 87,975 crore as of December-end.
IREDA Share Price
IREDA's stock ended 0.95% lower at Rs 128.69 apiece on the NSE on Friday. This compares to 0.20% in the Nifty index.
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