State-owned non-banking finance firm Indian Renewable Energy Development Agency (IREDA) is planning to issue a follow-on public offer (FPO) in order to raise equity capital and lending
for renewables.
The company is aiming to raise Rs. 24,200 crore in FY25.
“We feel we would require more equity capital. Raising debt is not a problem for us.
“The project size in green energy is getting bigger, and we intend to support the sector’s growth. For this, we believe an FPO is the route to raise more equity capital,” IREDA chairman and managing director Pradip Kumar Das said while addressing a media round table discussion on Tuesday.
The company had launched its initial public offering (IPO) in December 2023 and is presently the only public sector NBFC with focus on green energy sectors.
For FY25, the company plans to borrow Rs. 24,200 crore and sees its loan disbursements increasing significantly this year.
With increase in loan disbursements in 2024-25, the company will require more money than planned borrowing this fiscal to meet its fund requirements,
Das said.
However, the company did not specify the FPO amount and the timeline. “It is difficult to tell whether it would be this fiscal year or next,” he said.
The chairman further sees loan disbursements to increase during the current fiscal year as the government bets big on renewable energy projects.
The company’s loan disbursements increased to Rs. 25,089 crore in FY24, up 16% from Rs. 21,639 crore in 2022-23. IREDA’s cumulative loan book at the end of FY24 stood at `59,698 crore.
Das also noted that the company has requested the government to include it in the capital gains exemption bond under Section 54EC of the Income Tax Act, 1961 similar to other energy sector NBFCs – state-owned PFC and REC.
“There is a lot of potential in the Indian bond market, and we think we can tap it. MNRE will also write to the finance ministry requesting our inclusion. We are a 100% green company and well suited for 54EC,” he said.