IREDA Share Price Falls After Rs 5,000 Cr Fundraise Plan - Low QIP Premium Raises Eyebrows

Shares of Indian Renewable Energy Development Agency (IREDA) slipped over 2% to Rs 172 on June 6, after the state-run financier of renewable energy projects announced plans to raise up to Rs 5,000 crore through a qualified institutional placement (QIP).

Floor Price Set Close to Market Rate
IREDA’s board approved a floor price of Rs 173.83 per share for the QIP, just marginally above the current market levels. This limited premium appears to have dampened investor sentiment, reflecting in the stock’s intraday dip.

IREDA Share Price Today
On the BSE, the stock opened at Rs 174.45, hit a low of Rs 172.40, and was trading at Rs 174.65, down 1.05%, at 1:04 PM.

On the NSE, it opened at Rs 174.00, hit a low of Rs 172.51, and was trading at Rs 174.50, down 1.10% at the same time.

Board Clears Fundraising, Draft QIP Documents
In its regulatory filing, IREDA stated, “We wish to inform you that pursuant to the approval of the Board of Directors at its meeting held on January 23, 2025, and approval of the shareholders by way of a special resolution passed on February 24, 2025, the Board of Directors, in its meeting held today, i.e., June 5, 2025, has inter alia considered and approved… the opening of the proposed Issue today.”

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The board also cleared the preliminary placement document and draft application form for the QIP. The appointed merchant bankers include IDBI Capital Market Services Ltd., BNP Paribas, SBI Capital Markets Ltd., Emkay Global Financial Services Ltd., and Motilal Oswal Investment Advisors.

IREDA Share Price History
Over the past year, IREDA’s stock has seen mixed performance. It is down 2.05% in the last 12 months and has dropped 21.10% over the past six months. However, in the short term, the stock has gained 16.48% in three months and 8.99% over the past month. Notably, it saw a minor dip of 0.06% in the last week.
 

About IREDA
IREDA is a government-owned financial institution dedicated to promoting, developing, and financing renewable energy and energy efficiency projects across India.