IREDA raises ₹2,000 crore through its share sale — LIC gets 50% of the allotment

Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. will be in focus on Wednesday, June 11, after the state-run renewable energy financier, announced the closure of its Qualified Institutional Placement (QIP) earlier in the day.

The company has managed to raise ₹2,000 crore through this share sale process, by issuing equity to eligible institutions.

IREDA’s board approved the issue of 12.14 crore equity shares of the company, as part of the process. Issue price of the QIP has been fixed as ₹155.14 per share, which is 5% discount to the floor price of the issue.
Life Insurance Corporation of India (LIC), India’s largest insurance company has been issued half or 50% of total number of shares approved under the QIP. Societe Generale, Morgan Stanley and Vikasa India EIF I Fund have also been issued more than 5% of the total shares on offer under the QIP.
InstitutionNo. Of Shares% Of QIPLife Insurance Corporation of India6.07 Crore50%Societe Generale ODI1.09 Crore8.98%Morgan Stanley Asia Singapore Pte.1.1 Crore9.12%Vikasa India EIF I Fund62.34 Lakh5.13%
Post the issue of the QIP shares, the total paid-up equity share capital of the company increase from ₹2,687 crore, consisting of 268.77 crore shares, to ₹2,809 crore, consisting of 280.92 crore shares.

As per the March quarter shareholding pattern, LIC did not have stake in IREDA, or its stake would have been less than 1%, since its name does not feature on the list of shareholders.

The government had a 75% stake in the company, while small retail shareholders, or those with authorised share capital of up to ₹2 lakh, had a 20% stake in the company.

Share of IREDA ended 0.4% lower on Wednesday, at ₹182.57. The stock has risen 9% in the last one month.