Govt approves IREDA’s retail subsidiary

The agency will establish a wholly-owned retail subsidiary for handling the retail business under PM-Suryaghar (Rooftop Solar), PM-KUSUM schemes and B2C segments in Renewable and Emerging RE sector including EVs, Energy Storage, Green Technologies, Sustainability, Energy Efficiency.

Indian Renewable Energy Development Agency Limited (IREDA) received in-principle approval from the Department of Investment and Public Asset Management (DIPAM), to establish a wholly-owned retail subsidiary for handling the retail business under PM-Suryaghar (Rooftop Solar), PM-KUSUM schemes and B2C segments in Renewable and Emerging RE sector including EVs, Energy Storage, Green Technologies, Sustainability, Energy Efficiency, etc.

At the end of the September quarter, retail investors held a 19.88 per cent stake in IREDA, an increase from the 18.59 per cent stake they had at the end of the June quarter. The number of retail investors in IREDA also rose significantly, from 22.15 lakh in June to 25.86 lakh. Meanwhile, the government maintained a substantial 75 per cent stake in the company. Despite this growth in retail investment, India’s Mutual Funds have not shown significant interest in IREDA, holding a constant stake of just 0.2 per cent. IREDA has recently garnered attention due to its upcoming fundraising plan, which aims to raise ₹4,500 crore primarily through an institutional share sale. On Thursday, IREDA shares closed at ₹232.70, reflecting a 0.68 per cent increase for the day. Although the shares peaked at ₹310, representing nearly a tenfold increase from their IPO price of ₹32, they have since declined by 30 per cent from that peak.

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Commenting on this development, Pradip Kumar Das, Chairman & Managing Director, of Indian Renewable Energy Development Agency Limited, stated, “This new retail subsidiary marks a significant milestone in our journey towards fostering sustainable energy solutions at the grassroots level. By extending our expertise in renewable energy finance to the retail market, we will provide innovative financing options for both urban and rural consumers, promoting sustainable practices and reducing carbon footprints.”

This expansion aligns with the Government of India’s vision to accelerate renewable energy adoption nationwide and create new opportunities in the clean energy sector.