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IREDA, the public sector NBFC, is making headlines with plans to raise Rs 4,500 crore through a Follow-on Public Offering (FPO). This news has already made waves in the stock market, pushing IREDA’s share price up by 10%. The official details of this FPO w

IREDA, the public sector NBFC, is making headlines with plans to raise Rs 4,500 crore through a Follow-on Public Offering (FPO). This news has already made waves in the stock market, pushing IREDA’s share price up by 10%. The official details of this FPO will be revealed in a board meeting on August 29, 2024.

Why is IREDA Raising Funds?

IREDA has ambitious plans for the Rs 4,500 crore it aims to raise:

• Green Projects Financing: Funding large renewable projects like wind, solar, and hydropower.
• Increasing Loan Disbursals: Expanding loan disbursals for green energy projects beyond Rs 30,000 crore.
• Strengthening Finances: Boosting financial health and enhancing the ability to raise more debt.
• Supporting Government Initiatives: Aligning with India’s renewable energy policies and targets.
• Adopting New Technologies: Investing in advanced technologies for improved energy efficiency.
• Expanding Operations: Enhancing operational capacity and infrastructure development.
• Issuing Capital Gains Bonds: Potentially issuing tax-free bonds under Section 54EC.

A Glimpse of IREDA’s Journey

IREDA’s journey has been challenging yet remarkable. After its debut on Dalal Street in December 2023, IREDA became the only PSU NBFC solely focused on environmental energy. Despite earlier setbacks, IREDA has carved a niche in the finance industry, and this upcoming FPO is a significant step towards solidifying its position.

What’s Next for IREDA?

In 2023-24, IREDA’s loans crossed Rs 25,089 crore, with expectations to exceed Rs 30,000 crore by the end of the financial year. The board has also approved a borrowing plan of Rs 24,200 crore, including raising funds through bonds, term loans, and external commercial borrowings.

IREDA is also pushing for inclusion in the Capital Gains Exemption bond under Section 54EC, which could elevate its status to that of industry leaders like PFC Ltd and REC Ltd.

IREDA, the public sector NBFC, is making headlines with plans to raise Rs 4,500 crore through a Follow-on Public Offering (FPO). This news has already made waves in the stock market, pushing IREDA’s share price up by 10%. The official details of this FPO will be revealed in a board meeting on August 29, 2024.

Why is IREDA Raising Funds?

IREDA has ambitious plans for the Rs 4,500 crore it aims to raise:

• Green Projects Financing: Funding large renewable projects like wind, solar, and hydropower.
• Increasing Loan Disbursals: Expanding loan disbursals for green energy projects beyond Rs 30,000 crore.
• Strengthening Finances: Boosting financial health and enhancing the ability to raise more debt.
• Supporting Government Initiatives: Aligning with India’s renewable energy policies and targets.
• Adopting New Technologies: Investing in advanced technologies for improved energy efficiency.
• Expanding Operations: Enhancing operational capacity and infrastructure development.
• Issuing Capital Gains Bonds: Potentially issuing tax-free bonds under Section 54EC.

A Glimpse of IREDA’s Journey

IREDA’s journey has been challenging yet remarkable. After its debut on Dalal Street in December 2023, IREDA became the only PSU NBFC solely focused on environmental energy. Despite earlier setbacks, IREDA has carved a niche in the finance industry, and this upcoming FPO is a significant step towards solidifying its position.

What’s Next for IREDA?

In 2023-24, IREDA’s loans crossed Rs 25,089 crore, with expectations to exceed Rs 30,000 crore by the end of the financial year. The board has also approved a borrowing plan of Rs 24,200 crore, including raising funds through bonds, term loans, and external commercial borrowings.

IREDA is also pushing for inclusion in the Capital Gains Exemption bond under Section 54EC, which could elevate its status to that of industry leaders like PFC Ltd and REC Ltd.