IREDA QIP: Aiming to Raise ₹4,500 Crore to Fuel Rapid Growth Trajectory

On June 6, 2025, IREDA shares will be on investors’ radar as the company had launched its highly anticipated Qualified Institutional Placement (QIP) late Thursday evening. IREDA’s management has previously emphasised the need for fresh capital to support its rapid growth trajectory. As a result, the company sought government approval to pursue the QIP route, viewed as a more efficient way to raise large-scale funding from institutional players.

IREDA QIP Details

IREDA aims to raise up to ₹4,500 crore through this QIP by offering shares to eligible institutional investors. The floor price for the offering has been fixed at ₹173.83 per share, reflecting a marginal 1.7% discount to Thursday’s closing price of ₹176.50.

IREDA’s Shareholding Landscape

Government Remains Majority Owner

Since the listing, the Government of India has retained a dominant 75% stake in IREDA. The remaining 25% free float has seen high participation from retail investors, who have actively traded the stock through its ups and downs.

Retail Participation Doubles in Six Months

At the close of December 2023, IREDA had 13.5 lakh retail shareholders, holding a collective 15.25% stake. As of the latest data, that number has nearly doubled to 26.48 lakh retail shareholders, now accounting for a 20.25% stake in the company.

Institutional Investors

Despite the stock’s dramatic performance, domestic mutual funds have largely stayed away, holding a negligible 0.23% stake. Foreign Portfolio Investors (FPIs) have a slightly higher interest, with a 1.75% holding as of the March 2025 quarter.

Also Read: Adani Airports, a Subsidiary of Adani Enterprises, Raises $750 Million

IREDA Share Price Performance

IREDA shares closed 1.4% higher on Thursday at ₹176.5. The stock has gained nearly 10% over the past month but still trades at a 40% discount from its all-time high of ₹310.

IREDA entered the stock market in December 2023, pricing its IPO at ₹32 per share. In a matter of days post-listing, the stock skyrocketed, multiplying nearly sevenfold, breaching the ₹200 mark. The stock corrected sharply, dipping below ₹100, before regaining momentum in mid-2024 to scale fresh highs of ₹310 per share—a nearly 10x return from its IPO level.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.