Torrent Power Raises Rs 3,500 Crore Through Qualified Institutional Placement

Torrent Power Ltd. has successfully raised approximately Rs 3,500 crore through qualified institutional placement (QIP) of equity shares. The company allotted 2.3 crore equity shares of face value Rs 10 each to eligible institutional investors at a price of Rs 1,503 per share. This issuance was completed on December 5, 2024.

The issue price represents a 3.4% discount to the floor price of Rs 1,555.75 per share, which had been set according to the SEBI regulations. Following the allotment, Torrent Power’s paid-up equity share capital has increased from Rs 480.61 crore to Rs 503.90 crore, reflecting the issuance of new shares.

This QIP is part of the company’s ongoing strategy to raise capital for future business expansion and strengthen its financial position. Torrent Power has confirmed that the shares have been allotted to qualified institutional buyers, with a list of allottees who received more than 5% of the shares provided in a separate annexure.

The company will also be submitting the updated shareholding pattern as part of the listing application, in compliance with SEBI’s disclosure requirements.

A QIP is a method through which listed companies can raise capital from domestic markets without the need for extensive regulatory filings. Established by the Securities and Exchange Board of India (SEBI), the QIP allows companies to issue securities directly to qualified institutional buyers (QIBs) without requiring prior approvals or documentation typically associated with public offerings.

Introduced on May 8, 2006, the QIP framework was designed to reduce India's reliance on foreign capital for funding its economic growth, as per Investopedia. By providing an easier and more streamlined process, SEBI aimed to encourage companies to tap into domestic capital resources. Through this mechanism, companies can raise funds efficiently and effectively, contributing to the growth of the Indian financial market.