State-owned lender Indian Renewable Energy Development Agency (IREDA) plans to launch a second tranche of qualified institutional placement (QIP) of equity shares worth around Rs 3,000 crore in the current financial year. The company raised Rs 2,005 crore through QIP in June this year. In the upcoming round, the government will dilute a 3.76% stake, after having diluted 3.24% in the first tranche.
“The Rs 3,000 crore of equity fund will enable us to lend Rs 24,000 crore,” Pradip Kumar Das, chairman & managing director, IREDA said, adding that they will tap the market depending on the market conditions.
The company, which borrowed Rs 25,000 crore in FY25, is looking to raise Rs 30,000 crore this year, he said. It raised Rs 5,903 crore during the quarter, including a JPY 26 billion ECB from SBI Tokyo.
Lending to continue
Despite the Gensol Engineering issue, he said they will continue to lend to new and emerging areas such as e-mobility. “We are the extended arm of New and Renewable Energy Ministry. if we do not lend, who else will lend?” he said, adding that 76% of their loans are de-risked, traditional renewable energy assets and about 22% in new and emerging segments.
Das said they have provisioned Rs 275 crore as against outstanding loan of Rs 640 crore by Gensol Engineering, and they don’t foresee it to make provisioning in the long term once the resolution process gets running.
“It (Gensol) was not a sector issue nor lender-related issue, it was a case of mismanagement,” Das said.
He said they were the first lender in the Gensol case to approach the NCLT and have an independent resolution professional (IRP) appointed.
Loan book sees sharp growth
When asked about how the lender will ensure that in future they don’t encounter problems such as Gensol, he said that they have to come out with watertight renewals and monitoring.
However, he cautioned that one should not tighten it so much so that other borrowers suffer and don’t get any loans.
IREDA’s outstanding loan book surged to Rs 79,941 crore, a 26% increase over the previous year.