IREDA FPO is in the works — Management shares timeline and potential size
IREDA FPO is in the works — Management shares timeline and potential size
Indian Renewable Energy Development Agency is likely to raise equity capital through a Follow-on Public Offer (FPO), subject to the government's consent, the company's management told CNBC-TV18 in an interaction.
IREDA CMD Pradip Kumar Das told CNBC-TV18 that the FPO is likely to take place between November this year and February next year as the company needs an equity infusion again.
The quantum of the FPO is likely to be between ₹400 crore to ₹500 crore, Das said, adding that a request for an FPO has been placed with the government but the process takes time.
IREDA had gone public in November last year, selling shares in its Initial Public Offer at ₹32 apiece. Since then, the stock has seen a surge of over 7x to hit an all-time high of ₹214 and continues to trade near those levels.
At the end of the March quarter, the government held a 75% stake in IREDA.
Das also mentioned that IREDA has also placed a request with the Finance Ministry to be included under Section 54EC of the Income Tax Act, along with HUDCO, confirming an earlier report from Moneycontrol last week.
The IREDA CMD said that the inclusion under Section 54EC will bode will for the company in terms of lower borrowing costs.
IREDA sanctioned loans worth ₹9,136 crore during the first quarter of financial year 2025, a growth of nearly 5x from last year's figure of ₹1,893 crore. Das attributed this growth to subdued loan sanctions in the base quarter.
Disbursement of loans during the quarter stood at ₹5,320 crore, which is a 67.6% growth compared to the ₹3,174 crore it had disbursed during the corresponding quarter last year.
At the end of the June quarter, IREDA's loan book stood at ₹63,150 crore, up 33.77% from the same period last year, when it stood at ₹47,207 crore.
IREDA has also announced plans to become a Maharatna PSU by financial year 2030.
Shares of IREDA are trading 3.7% higher at ₹197.45. The stock is up nearly 80% so far in 2024.