Preparations are underway to sell government stake in renewable energy sector company IREDA. The Department of Investment and Public Asset Management (DIPAM) has approved the public sector company. The government will sell its 7% stake in the company through QIP. As of June 30, 2024, the government owns 75% of IREDA.
The announcement came after the market closed on Wednesday. On Wednesday, IREDA shares closed at Rs 227.75 on the BSE and were stable at Rs 227.50. On Thursday, IREDA shares closed at Rs 230, up 1.27%. The market capitalization of IREDA is Rs 611.46 billion. On Wednesday, IREDA shares traded at Rs 48.08 crore and Rs 20.93 lakh on the BSE. The stock hit an all-time low of Rs 49.99 on November 29, 2023 and hit an all-time high of Rs 310 on July 15, 2024.
The company’s fundraising was approved
IREDA said that based on the recommendations of the high-level committee, Investments and DIPAM had approved the proposal of IREDA to raise funds on September 18, 2024 and permission has been obtained to issue 7% in one or more tranches after the issue to reduce the shareholding of the Government of India in IREDA through Qualified Institutional Placement (QIP).
To raise Rs 4500 crore
On August 29, IREDA approved the proposal to raise funds up to Rs 4,500 crore in one or more installments through FPO or QIP or preferential issue or any other preferred method. Now, after the approval of DIPAM, funds of Rs 4,500 crore will be raised.
The company went public last year
On November 29, IREDA shares were listed on BSE and NSE at a premium of 56.25% over the issue price of Rs 50. The price band of IREDA IPO was Rs 30-32 per share and the lot size was 460 shares. The IPO was open for bidding from November 21 to November 23. IREDA is now a Mini Ratna Category 1 government company. Its administrative management is handled by the Ministry of New and Renewable Energy (MNRE).
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