**Policy Summary: IREDA's Capital Raising Through Qualified Institutions Placement (QIP)**
In June 2025, the Indian Renewable Energy Development Agency (IREDA) successfully raised approximately ₹2005.9 crores through a Qualified Institutions Placement (QIP) of fresh equity shares. The issue price was ₹165.14 per equity share, reflecting a discount of ₹8.69 per share based on a floor price of ₹173.83.
Key institutional investors who participated in the QIP, with allocations exceeding 5% of the issue size, include: Life Insurance Corporation of India (LIC) (50.00%), Societe Generale ODI (8.98%), Morgan Stanley Asia Singapore PTE. ODI (9.12%), and Vikasa India EIF I Fund (5.13%).
The funds raised through the QIP were allocated to the Tier 1 capital of IREDA, bolstering the Capital to Risk Weighted Assets Ratio (CRAR) from 17.77% as of March 31, 2025, to 19.58% as of June 30, 2025. The net proceeds from the QIP are earmarked for lending towards renewable energy projects and for general corporate purposes.
The successful QIP execution, subsequent to IREDA's initial public offering (IPO), demonstrates strong investor confidence in both IREDA and India's renewable energy sector. This confidence is further evidenced by robust listing gains and continued strength in the secondary market following the IPO listing price of ₹32 per share. Key indicators reflecting positive investor sentiment include the participation of marquee investors like LIC, and the inclusion of global financial institutions such as Morgan Stanley and Societe Generale as significant allottees.
Key Entities Referenced
Life Insurance Corporation of India (LIC): A major institutional investor that participated in IREDA's QIP.
Indian Renewable Energy Development Agency (IREDA): A financial institution that promotes and finances renewable energy projects in India.
Qualified Institutions Placement (QIP): A method for listed companies in India to raise capital by issuing securities to qualified institutional buyers.
SHRI VIJAY BAGHEL: Member of Lok Sabha who raised a question regarding IREDA's fund raising.
SHRI ANANTA NAYAK: Member of Lok Sabha who raised a question regarding IREDA's fund raising.
Societe Generale: A global financial institution and investor in IREDA's QIP.
Morgan Stanley Asia: A global financial institution and investor in IREDA's QIP.
Vikasa India EIF I: An investor in IREDA's QIP.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2816
ANSWERED ON 06.08.2025
RAISING OF FUNDS BY IREDA
2816. SHRI VIJAY BAGHEL
SHRI ANANTA NAYAK
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether Indian Renewable Energy Development Agency (IREDA) has raised funds through
Qualified Institutions Placement (QIP);
(b) if so, the issue price and discount offered;
(c) the name of the major institutional investors participated in the QIP including LIC and other
investors along with their respective allocations;
(d) the manner in which funds raised likely to be utilised to strengthen IREDA's capital base and
to support green energy financing;
(e) whether the actions immediately after IREDA's IPO indicate strong confidence of investors in
India's renewable energy sector; and
(f) if so, the details of key indicators thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) Yes, IREDA has raised funds of around ₹ 2005.9 crores by issuance of fresh equity shares
through Qualified Institutions Placement (QIP) route in June, 2025.
(b) The issue price was ₹ 165.14 per equity share. The discount offered was ~ 5.00% on the floor
price (₹173.83) amounting to ₹ 8.69 per equity share.
(c) The major investors to whom allotment (more than 5% of the QIP offerings) was made are as
under:
Sr. Name of the % allotment
No. Allotees of the Issue
size
1 Life Insurance
Corporation of India 50.00
2 Societe Generale -
ODI 8.98
3 Morgan Stanley Asia 9.12
(Singapore) PTE. –
ODI
4 Vikasa India EIF I 5.13
Fund(d) The funds raised through QIP issue were added to the Tier-1 capital of the Company, thereby
boosting the Capital to Risk (Weighted) Assets Ratio (CRAR). The CRAR of the Company
increased from 17.77% as on March 31, 2025 to 19.58% as on June 30, 2025 majorly due to increase
in Tier-1 capital from the QIP raising. As per the objects of the Issue the net proceeds raised from
the QIP were used for onward lending towards renewable energy projects and general corporate
purpose.
(e)&(f) The timing and successful execution of IREDA’s QIP after its IPO underscores a high level
of investor confidence in the company and India’s renewable energy sector.
Following listing at an issue price of ₹32 per share, IREDA’s stock has shown robust listing gains
and continued strength in the secondary market which reflects both investor’s optimism around
renewable energy financing and confidence in IREDA’s financials, asset quality, growth trajectory,
robust and transparent corporate governance.
Key indicators that illustrate the robust investor sentiment include:
a. The QIP was subscribed by marquee investors like LIC which reinforces the long-term
institutional confidence in IREDA’s business model and sectoral growth.
b. The inclusion of global financial institutions like Morgan Stanley and Societe Generale as
significant allottees shows that foreign investors also view IREDA as an attractive player in India’s
renewable energy financing space.
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