Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

IREDA Raises Rs2,006 Cr via QIP; LIC Emerges as Largest Investor

The Indian Renewable Energy Development Agency (IREDA), a government-owned lender, has successfully raised Rs2,006 crore through a Qualified Institutional Placement (QIP) of 12.15 crore equity shares at Rs165.14 each. The price, which included a premium of Rs155.14 per share, was set at a 5% discount to the floor price. Life Insurance Corporation of India (LIC) emerged as the largest investor, acquiring over 6 crore shares, representing 50% of the total issue.

Other major investors included Societe Generale – ODI (8.98%), Morgan Stanley Asia (Singapore) PTE – ODI (9.12%), and Vikasa India EIF I Fund (5.13%). This QIP is part of IREDA's broader Rs5,000 crore fundraising plan, intended to limit the Government of India’s post-issue shareholding dilution to a maximum of 7%.

IREDA has also been actively diversifying its capital base. In March 2025, it raised JPY 2,600 crore from the Tokyo branch of the State Bank of India, including a greenshoe option. The agency issued its first perpetual bonds worth Rs1,247 crore at an 8.4% coupon rate and also raised Rs910 crore through subordinated Tier II bonds to strengthen its capital base.

In a separate development, IREDA received Rs24.48 crore from the Income Tax Department as partial relief for the 2011–12 assessment year. These initiatives reflect IREDA's robust capital strategy to support India’s growing renewable energy financing needs.