Speaking to reporters, IREDA Chairman and Managing Director Pradip Kumar Das said the plan is to float a FPO to raise funds for renewable energy projects as the borrowing plan of ₹24,200 crore for FY25 would not be adequate.
He added that solar manufacturing and the green hydrogen manufacturing ecosystem are two top targets. For retail sectors like solar rooftops, Das said that IREDA would do joint lending with other NBFCs or banks. He further said the loan disbursements are expected to increase during the current fiscal year in view of the government’s push for renewable energy projects in the country.
State-run Indian Renewable Energy Development Agency (IREDA) is planning a follow-on public offer (FPO) in the current financial year to meet its capital requirement and for lending to green energy projects.
On Tuesday, shares of IREDA on the BSE settled at ₹183.55 a share, 4.14% higher from the previous close.
The net worth of the IREDA grew 44.2 per cent over the last financial year to reach Rs 8,559.43 crore, as of March 31, 2024. Company will soon be listed for issuing bonds eligible for exemption under Section 54EC of Income Tax Act. Section 54EC bonds, also known as capital gain bonds, are fixed income instruments that provide capital gains tax exemption under Section 54EC to investors. REC Ltd, National Highway Authority of India, Power Finance Corporation, and Indian Railway Finance Corporation can issue bonds under 54EC at present. The FPO proposal will require the Union Cabinet’s approval.
IREDA launched its initial public offering (IPO) in December last year, after two failed attempts in 2017 and 2019.
IREDA has incorporated a wholly owned subsidiary at the International Financial Services Centre (IFSC) in GIFT City, Gujarat, IREDA Global Green Energy Finance IFSC. It will act as an offshore platform for securing competitive funding and will help save hedging costs.
