Das emphasized the necessity of the equity infusion to sustain IREDA’s ‘triple A’ stable rating and to support its ambitious loan disbursement targets, which are projected to be above ₹30,000 crore in the Financial Year 2025. Currently, IREDA’s net worth stands at approximately ₹8,559 crore, with a loan portfolio of ₹59,698 crore.
As per Pradip Kumar Das, IREDA’s financial performance has seen substantial growth, with loan sanctions reaching ₹9,136 crore in the initial quarter of 2025, a nearly fivefold increase from ₹1,893 crore in the previous year. During the same period, loan payouts increased by 67.6%, reaching ₹5,320 crore compared to ₹3,174 crore the previous year. As of the second quarter, the loan book has expanded by 33.77% yearly, totaling ₹63,150 crore.
In addition to the planned FPO, IREDA is seeking inclusion under Section 54EC of the Income Tax Act, which would allow it to issue capital gains tax exemption bonds, potentially lowering borrowing costs according to Pradip Kumar Das. The Union Ministry of New and Renewable Energy also supports this inclusion.
The company’s strategic expansion plans also include the establishment of IREDA Global Green Energy Finance IFSC Ltd, a wholly-owned subsidiary located at the International Financial Services Centre (IFSC) in GIFT City, Gujarat. This move is part of IREDA’s broader goal to attain Maharatna status by 2030, further solidifying its position in the renewable energy sector.
Following its successful initial public offering (IPO) in December 2023, where shares were priced at ₹32 apiece, IREDA’s stock has surged over sevenfold to an all-time high of ₹214. The stock is currently trading around ₹197.45, reflecting an increase of nearly 80% in 2024.
IREDA’s board has approved a borrowing plan of up to 5, incorporating a mix of funding sources including commercial papers, bonds, term loans, external commercial borrowings, and perpetual debt instruments. However, Das acknowledged that this amount might be insufficient, thus necessitating the FPO.
The government, which holds a 75% stake in IREDA, is being approached for the necessary approvals to proceed with the FPO. This capital raise is important for supporting the rapidly growing project sizes in the green energy sector and meeting the growing demand for renewable energy financing.
IREDA showed its commitment to promoting the renewable energy sector in India through its strategic initiatives and strong financial performance. The upcoming FPO and potential inclusion under Section 54EC represent significant steps towards enhancing its financial stability and operational capacity.
