The key role of renewable power The IREDA board has authorized the funding of Rs 5000 crore in one or more tranches through a QIP or placement of qualifying institutions. According to the exchanges’ filing, the board has determined that shareholder permission is required for fundraising, and government ownership cannot reduce the company’s post-issue paid-up equity share capital by more than 7%.
It is anticipated that the money obtained will be utilized to assist the demand for finance for green energy. It will be utilized to increase funding for the nation’s clean energy finance programs.
This is the second time in less than six months that the Indian Renewable Energy Development Agency board has approved the use of QIP to raise money. In September of last year, the board had previously authorized financing up to Rs 4,500 crore through another QIP. This new stock issue was approved by the Department of Investment and Public Asset Management, or DIPAM.
One way to raise money is through qualified institutions placement or QIP. It is used by businesses to raise money from eligible institutional purchasers. Access to special deals, improved pricing, and reduced transaction costs are some of the main benefits of this type of fundraising campaign. It is susceptible to underpricing based on market conditions, though, as it is reliant on market rates.
