The Indian Renewable Energy Development Agency Ltd. (IREDA) said it had received approval from the Department of Investment and Public Asset Management (DIPAM) to raise approximately ₹4,500 crore through fresh equity issue.

The fund-raising will be carried out through the Qualified Institutions Placement (QIP) route, with a planned dilution of the Government of India’s shareholding in IREDA by up to 7% on a post-issue basis, to be executed in one or more tranches, the company said in a statement. 

The fund-raising exercise is aimed at strengthening IREDA’s capital base, besides enabling it to scale its financing for renewable energy projects, it added.

Pradip Kumar Das, CMD, IREDA, said, “With fresh capital infusion, we will be better positioned to support India’s ambitious renewable energy goals and continue playing a pivotal role in financing clean energy projects across the country.”

IREDA shares closed at ₹227.50 on the BSE on Wednesday.