Indian Renewable Energy Development Agency Limited (IREDA), a public sector enterprise, held its 22nd Extra-Ordinary General Meeting (EGM) on 24th February 2025 via Video Conferencing (VC) and Other Audio Visual Means (OVAM). The meeting concluded with significant shareholder approvals regarding the company’s capital structure and governance changes, particularly following the company’s receipt of the Navratna status from the Government of India.

Key Approvals and Resolutions

During the 22nd EGM, IREDA’s shareholders approved two major resolutions by special majority:

1. Capital Raise through Equity Issuance – The company resolved to raise capital through an issuance of equity shares to support its business operations and expansion plans. This is aimed at bolstering IREDA’s financial resources in the coming years.
2. Amendment of Articles of Association (AoA) – Shareholders voted to amend the Articles of Association (AoA) of IREDA to reflect the newly conferred Navratna status.

The grant of Navratna status enables IREDA to exercise greater autonomy in decision-making, and the amendment in the AoA accommodates these changes.

Amendments to the Articles of Association (AoA)

The amendments to the AoA were approved by the shareholders as follows:

• Deletion of Specific Articles – The following sub-articles under Article 77(ii) were deleted, which allowed for greater financial flexibility:

  • Article 77(ii)(c) – Prior approval of the President for capital expenditures exceeding ₹500 crore or net worth, whichever is less.
  • Article 77(ii)(f) – Prior approval for equity investments exceeding 15% of net worth or ₹500 crore in joint ventures and subsidiaries.

• Insertion of New Articles – New provisions were added under Article 80, concerning IREDA’s ability to form joint ventures and subsidiaries and aligning the powers of the Board with the enhanced delegation of powers granted to Navratna status companies.

  • Article 80(27): Board powers to establish joint ventures or subsidiaries in India or abroad.
  • Article 80(28): Board’s powers under Navratna status, including compliance with government guidelines for such companies.

EGM Proceedings

The meeting was chaired by Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, with the following directors and key personnel present:

• Dr. Bijay Kumar Mohanty, Director (Finance) and CFO
• Shri Padam Lal Negi, Government Nominee Director
• Dr. Jaganath CM Jodidhar, Independent Director
• Shri Ram Nihal Nishad, Independent Director
• Smt. Rohini Rawat, Independent Director

In addition, Shri Tarun Singh from Ministry of New and Renewable Energy (MNRE), representing the President of India, attended the meeting through VC, along with the company’s statutory and cost auditors.

The Company Secretary, Smt. Ekta Madan, opened the meeting by welcoming shareholders, directors, and auditors. She informed attendees about the e-voting facility available from 21st February to 23rd February 2025, which allowed shareholders to cast their votes online prior to and during the meeting.

During the meeting, shareholders congratulated the company for its achievements and asked questions regarding its future strategy. All queries were addressed by the Chairman & Managing Director, Shri Pradip Kumar Das.

Additional Details

The results of the voting on the resolutions will be available on the company's website, www.ireda.in, as well as on the websites of the BSE and NSE.

Following the EGM, the Amendments to the Articles of Association and other resolutions will be formally implemented. A copy of the updated AoA will be uploaded on the company’s website for public access.

This development represents a significant move for IREDA, enhancing its corporate governance structure and financial flexibility as it embarks on further expansion with a stronger capital base and governance framework under the Navratna status.

Market Impact and Strategic Outlook

The decisions taken at the EGM are expected to significantly strengthen IREDA’s position in the renewable energy sector in India. With greater financial autonomy and enhanced powers under the Navratna status, the company is well-positioned to take on more ambitious projects and strategic partnerships, both in India and abroad.

This shift in governance will likely improve investor confidence and may lead to a positive response in the capital markets as IREDA continues to contribute to India’s renewable energy goals.

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