IREDA shares key update on govt stake sale post market hours

Indian Renewable Energy Development Agency Ltd (IREDA) on Wednesday said the Department of Investment and Public Asset Management (DIPAM) has approved the alternative mechanism on the proposal of the raising of funds by the public sector major. The government will sell 7% stake in the firm via QIP.  As of June 30, 2024, the government owned 75% stake in IREDA.

The announcement was made after market hours on Wednesday. 

IREDA stock ended on a flat note at Rs 227.50 on Wednesday against the previous close of Rs 227.75 on BSE. IREDA’s market cap stood at Rs 61,146 crore. IREDA shares clocked a turnover of Rs 48.08 crore in today's session as 20.93 lakh shares changed hands on BSE. 

The stock fell to a record low of Rs 49.99 on November 29, 2023 and rose to a record high of Rs 310 on July 15, 2024.

"Department of Investment and Public Asset Management (DIPAM) vide their OM dated September 18, 2024, conveyed the approval of the Alternative Mechanism upon the recommendation of High Level Committee on the proposal of the raising of funds by IREDA, pursuant to which Alternative Mechanism has allowed for the dilution of GOI shareholding in IREDA, owing to issue fresh equity through Qualified Institutions Placement (QIP) route upto an extent of 7% of the paidup equity of IREDA on post issue basis in one or more tranches," said IREDA. 

IREDA on August 29 approved a fund raising proposal of up to Rs 4,500 crore via various methods such as a Follow-on Public Offer (FPO) or a QIP or a preferential issue or any other preferred method in one or more tranches.

Shares of IREDA made their market debut at a premium of 56.25% to the issue price at Rs 50 on November 29 on BSE and NSE. The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. The IPO was open for bidding from November 21 to November 23.

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.