State-run Indian Renewable Energy Development Agency Limited (NSEI:IREDA) (IREDA) is planning a follow-on public offer (FPO) in the current financial year to meet its capital requirement and for lending to green energy projects. Besides, the non-banking financial company (NBFC) will also take the perpetual loan route to raise funds. Last year in November, the green energy sector lender raised INR 21,500 million through an initial public offering (IPO) that was oversubscribed about 39 times.

Speaking to reporters, IREDA Chairman and Managing Director Pradip Kumar Das said the plan is to float a FPO to raise funds for renewable energy projects as the borrowing plan of INR 242,000 million for FY25 would not be adequate. Explaining the dynamics, he said that generally the months of September to November and February are best suited for raising capital. After the new government takes charge at the centre, by July 6, 2024, the company will begin the approval process, which could take 4-6 months.

He did not specify the amount that IREDA plans to raise. The proposal will require Union Cabinet approval. The lender is eyeing the second half of the current financial year or H1 FY26 for the FPO.