New Delhi:State-owned IREDA on Thursday said its board has fixed the floor price for qualified institutional placement (QIP) at Rs 173.83 per equity share to raise about Rs 5,000 crore.
The development comes after the Indian Renewable Energy Development Agency Ltd (IREDA) board in January this year approved a QIP to raise up to Rs 5,000 crore.
Subsequently, the proposal was cleared by the company's shareholders in February."Pursuant to the approval of the Board of Directors at its meeting held on January 23, and approval of the shareholders of the company by way of a special resolution passed on February 24, the Board in its meeting held has approved the authorising the opening of the proposed issue on June 5, 2025, to eligible qualified institutional buyers," the company said in a regulatory filing.
Further, the board said it has approved the floor price for the issue, being Rs 173.83 per equity share based on the pricing formula as prescribed under Sebi's ICDR (Issue of Capital and Disclosure Requirements) rules.The board has also approved preliminary placement document and the draft of the application form, in connection with the QIP, it added.
The company also said it may offer a discount of up to 5 per cent on the floor price in line with shareholder approval.IREDA said the issue price will be determined by the company in consultation with the book running lead managers appointed for the issue.
Further, the trading window will remain closed for the purpose of the QIP issue till further intimation.
The share sale to institutional investors will not dilute more than 7 per cent of the post-issue paid-up equity share capital of the company.IREDA said it will use the financial resources will support the growing demand for green energy financing.IREDA is a non-banking financial institution under the Ministry of New and Renewable Energy.
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