Home Uncategorized IREDA, a government-owned entity, intends to conduct an FPO in FY25 due to increased demand for renewable project loans.

IREDA, a government-owned entity, intends to conduct an FPO in FY25 due to increased demand for renewable project loans.

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IREDA’s net worth is approximately ₹8,600 crore, with a loan book of about ₹59,698 crore. Disbursements in FY24 amounted to roughly ₹25,089 crore, up from ₹21,639 crore in FY23.

The plans to launch a follow-on public offering (FPO) to capitalize on increasing financing opportunities in the energy transition sector and boost company growth, said CMD Pradip Kumar Das during a press interaction on Tuesday. He mentioned the intention to expand the loan book and raise funds this fiscal year, considering options such as an FPO and perpetual debt instruments to meet the growing project size in green energy. Approval from the Union cabinet would be required for the FPO.

Das also mentioned considering launching the FPO either in October-November or February. If unable to do so this fiscal year, the FPO would be launched in the first half of FY26.

IREDA
Source: MSN

IREDA’s Fiscal Progress and Strategic Initiatives

In FY24, IREDA disbursed about ₹25,089 crore, up from ₹21,639 crore in FY23. CMD stated that loan disbursement in FY25 would exceed ₹30,000 crore, necessitating additional resources for the current fiscal’s plan.

IREDA’s IPO was launched in December last year, following two unsuccessful attempts in 2017 and 2019. In April, the board approved a borrowing plan of ₹24,200 crore for FY25, comprising bonds, perpetual debt instruments, term loans, commercial papers, and external commercial borrowings.

Das mentioned that IREDA has urged the Centre to include it in the list for capital gains exemption bonds under Section 54EC of the Income Tax Act, 1961, akin to other power sector-focused state-run firms like PFC and REC. He added that the Union ministry of new and renewable energy would also support its inclusion. This initiative aims to offer investors capital gains tax exemption under Section 54EC of the Income Tax Act.

The company established a wholly-owned subsidiary, IREDA Global Green Energy Finance IFSC Ltd, at the International Financial Services Centre (IFSC) in GIFT City, Gujarat. It also attained Navratna status last month. On Tuesday, IREDA shares on the BSE closed at ₹183.55 each, marking a 4.14% increase from the previous day’s close.

You might also be interested in – IREDA has been awarded ‘Navratna’ status: 

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