Torrent Power Launches Rs 5,000-Crore QIP, Fixes Floor Price
Torrent Power said it intends to utilise the net proceeds from the QIP for repayment or pre-payment of outstanding borrowings.
Torrent Power Ltd.'s board on Monday approved the opening of the qualified institutional placement to raise up to Rs 5,000 crore to pare debt.
The floor price for the share sale is set at Rs 1,555.75 apiece, according to an exchange filing. The company may, at its discretion, offer a discount of not more than 5% on the floor price calculated for the issue.
The QIP issue price will be determined in consultation with the book running lead managers, it said.
The company said it intends to utilise the net proceeds for repayment or pre-payment of outstanding borrowings as well as general corporate purposes, as per an intimation to the BSE.
The merchant bankers for this issue includes Kotak Mahindra Capital Co., JM Financial Consultants Pvt. and Jefferies India Pvt.
The Torrent Group power producer had received board approval for the fundraise back in May. Other than QIP, it gave its nod to raise Rs 3,000 crore via non-convertible debentures in one or more tranches by way of private placement.
The company's consolidated debt stood at Rs 10,445.45 crore as of September 2024.
Torrent Power supplies electricity to the cities of Ahmedabad, Surat, Gandhinagar, Dahej SEZ , and Dholera SIR in Gujarat and Union Territory of Dadra & Nagar Haveli, Daman and Diu.
The company has identified energy storage sites in multiple states and plans to install about 5–8 gigawatt capacity at an investment of Rs 25,000–35,000 crore.
The company submitted two 'Shapath Patras' to the Union Ministry of New and Renewable Energy at the fourth edition of RE-Invest at Gandhinagar in September, pledging a total investment of Rs 64,000 crore in multiple projects.
The power utility company will achieve 10 GW of installed renewable energy capacity by 2030, with an investment of Rs 57,000 crore.
The firm will also set up a 1,00,000-kilo-tonnes per annum green ammonia production facility with a Rs 7,200-crore investment.
Shares of Torrent Power closed 4.66% higher at Rs 1,581.1 apiece on the NSE, ahead of the announcement, compared to a 0.6% advance in the benchmark Nifty 50. It has risen by 66% in the last 12 months and by 70% year-to-date.
