IREDA shares in focus: PSU plans up to ₹3,000 crore QIP in FY26; check details

IREDA share price: The company, according to a _PTI_ report, also said it had an exposure of ₹700 crore to the crisis-hit Gensol Engineering, and it has already recovered a little over ₹100 crore by way of various instruments, including encashing their bank guarantees as well as withdrawal of the FD money. IREDA share price: Shares of Indian Renewable Energy Development Agency Limited (IREDA) will be on investors' radar on Tuesday, July 22, as the state-run company plans to raise ₹2,500-₹3,000 crore through the qualified institutional placement (QIP) route this fiscal year as it looks to dilute another 3.76% of the government holding in the company following a successful IPO in December 2023. The company, according to a PTI report, also said it had an exposure of ₹700 crore to the crisis-hit Gensol Engineering, and it has already recovered a little over ₹100 crore by way of various instruments, including encashing their bank guarantees as well as withdrawal of the FD money. Gensol had acted as a financier and lessor of vehicles to the all-electric ride-hailing company Blue Smart. The Ahmedabad bench of the National Company Law Tribunal (NCLT) has already admitted to corporate insolvency proceedings against Gensol Engineering, following a petition by IREDA. In April this year, in an interim order, SEBI barred Gensol Engineering and promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi -- from the securities markets till further orders in a fund diversion and governance lapses case. “We have already raised ₹2,005 crore last month through a QIP by way of the government diluting a 3.24% stake. We are planning to raise another ₹2,500-3,000 crore in the second tranche within this fiscal year,” IREDA Chairman and Managing Director Pradip Kumar Das said during an interaction with the reporters in Mumbai. This will give the company further borrowing power worth ₹30,000 crore (this fiscal year), as the thumb rule says you can borrow eight times this money, he said, adding, “We will try to optimise our equity and our borrowing so that we can optimise lending and overall minimise the borrowing cost.” The chairman said that the government mandated the company’s board to dilute up to 7% this fiscal year; it still has scope to dilute another 3.76% stake. Das said last year IREDA borrowings were at around ₹24,000-₹25,000 crore. Other recent developments In a major policy boost, the Central Board of Direct Taxes (CBDT) under the Ministry of Finance has notified IREDA bonds as ‘long-term specified assets’ under Section 54EC of the Income Tax Act, 1961, effective July 9, 2025. This enables investors to claim capital gains tax exemption while supporting India’s green transition. The move is also expected to reduce IREDA’s cost of capital and encourage wider investor participation. Pradip Kumar Das said that “in the last two years, the company has been growing 27-30%. When the country net added 27-30 GW of green power last year, we grew at 29%. IREDA Q1 FY26 Results The company reported a 36% decline in its net profit to ₹247 crore in the June quarter compared to a year ago, mainly due to higher expenses. The company had posted a net profit of ₹384 crore in the quarter ended on June 30, 2024, a BSE filing showed. However, the revenue from operations improved to ₹1,947 crore during the quarter against ₹1,510 crore in the year-ago period. The total expense rose to ₹1,655 crore in the quarter from ₹1,034.96 crore in the same period a year ago. The financing cost climbed to ₹1,218 crore compared to ₹975 crore, while the impairment on financial instruments was ₹363 crore against the gain of ₹30 crore a year ago. (With inputs from PTI)