IREDA (Indian Renewable Energy Development Agency Ltd.) revealed that its Board of Directors has granted an in-principle approval to raise up to Rs 4,500 crore in equity capital.
According to the company's regulatory filing, the funds will be secured in one or more tranches through methods such as a Further Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, Preferential Issue, or other approved avenues.
"The Board of IREDA accorded In principle approval for raising equity capital for an amount aggregating upto Rs.4500 Crore in one or more tranches through Further Public Offer (FPO) / Qualified Institutional Placement (QIP) / Right Issue / Preferential Issue or any other permitted mode or a combination thereof, subject to the approval from the Govt of India and other statutory/regulatory approvals. The type of issue shall be decided subsequently," the company said in its regulatory filing.
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The shares of the non-banking finance company have been among the best-performing stocks on the bourses lately. For instance, on just year-to-date basis, IREDA has delivered strong multibagger returns of 142 per cent on the National Stock Exchange.
The company also further added that the exact number of securities to be issued will be decided later. The fundraising plan is pending approval from the Government of India and other applicable statutory and regulatory bodies.
Last month, the Navratna company had announced that it will be investing Rs 290 crore in a 900 MW hydroelectric power project in Nepal.
"This strategic investment aligns with our commitment to expanding renewable energy infrastructure and fostering international collaboration in the sector. The 900 MW project is a significant step towards harnessing Hydropower potential in Nepal, contributing to regional energy security and sustainable development," said Pradip Kumar Das, Chairman & Managing Director, IREDA.
