Indian Renewable Energy Development Agency (IREDA) shares jumped 2.09% to ₹232.15 in early trading on September 19, 2024, following the company’s announcement of government approval for a Qualified Institutions Placement (QIP).
The Department of Investment and Public Asset Management (DIPAM) conveyed the Alternative Mechanism’s approval on September 18, 2024, allowing IREDA to dilute the government’s shareholding by up to 7% through fresh equity issuance via QIP. This decision aligns with IREDA’s board’s in-principle approval on August 29 to raise up to ₹4500 crore through various means, including QIP.
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The QIP can be conducted in one or more tranches, providing IREDA with flexibility in its fundraising efforts. This move is expected to strengthen the company’s capital base and support its growth in the renewable energy sector.