IREDA Shares Wobble on D-Street after Raising ₹2,000 crore via QIP, LIC gets 50% of the allotment

Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) took a volatile trajectory on D-street after the board approved the funds raised via Qualified Institutional Placement (QIP). The NBFC stock erased all gains after witnessing a surge of nearly 2% on Wednesday.

At 11:30 am, the IREDA shares were trading at ₹182.80, up by 0.19% on the National Stock Exchange.

IREDA has approved the allotment of 12,14,66,562 crore equity shares at an issue price of ₹165.14 per share to QIBs, raising a total of ₹2,005.90 crore.

The shares have a face value of ₹10 each and include a premium of ₹155.14 per share.

"Pursuant to the allotment of Equity Shares under the QIP, the paid-up Equity Share capital of the Company stands increased from ₹26,87,76,47,060 Crore consisting of 2,68,77,64,706 Equity Shares to ₹28,09,23,12,680 Crore consisting of 2,80,92,31,268 Equity Shares each," the company said in its exchange filing.

"The shareholding pattern of the Company, before and after the Issue, will be submitted along with listing application in the format specified in Regulation 31 of the Securities and Exchange Board of India," the filing further read. Life Insurance Corporation of India (LIC) came out on top, acquiring 50% of the shares issued by IREDA. The insurance company was allotted 6,07,33,280 shares, which accounts for exactly 50% of the total shares issued via QIPs.

IREDA Share Price

So far this year, the shares of the Navratna company have struggled to trade in the green territory, witnessing a double-digit fall of over 17% on the NSE. However, over the last 1-month period, IREDA shares have gained over 9%.

As of now, the shares are down by around 40% from the 52-week high price level of ₹310.