Torrent Power’s Rs 3,500-Crore QIP Subscribed Four Times
Torrent Power received bids of about Rs 14,000 crore against the QIP issue of Rs 3,500 crore. "This is a testament to the market’s conviction in our growth story," Chairman Samir Mehta said.
Torrent Power Ltd. on Monday said that its qualified institutions placement of Rs 3,500-crore, or about $413.20 million, received an "overwhelming response from marquee global and domestic investors".
The QIP, which opened on Dec. 2, and concluded on Dec. 5, received bids of about Rs 14,000 crore, thereby resulting in the issue being subscribed four times, according to an exchange filing.
A total of 2,32,86,759 equity shares, priced at Rs 1,503 apiece, were allotted. They were offered for a discount of Rs 52.75, or 3.40%, to the floor price of Rs 1,555.75, as determined in terms of the SEBI ICDR Regulations.
Chairman Samir Mehta said that “the overwhelming response to our QIP” was “a testament to the market’s conviction in the Torrent’s growth strategy, execution capabilities, operational excellence and best-in-class capital allocation”.
He added, “This capital raise will strengthen our balance sheet and accelerate our growth plans. We are grateful to our investors in reposing their trust in us.”
The long-only investors that subscribed to the QIP included global investors such as Norges Bank, and Amundi. Domestic mutual funds and insurance companies like SBI MF, Capital Group, SBI Pension, Kotak MF, and Nippon MF, were also among the long-only investors.
The fundraise, one of the largest conducted by a private utility player in India during the current financial year, "marks the maiden equity raise by the Company and first equity raise in last three decades by Torrent Group", according to the company.
Kotak Mahindra Capital Co., Jefferies India Pvt. and JM Financial Ltd. were the lead managers for the QIP.
Khaitan & Co. were the company’s legal counsel on the Indian law. Shardul Amarchand Mangaldas & Co and Sidley Austin LLP acted as legal counsels to the book-running lead managers on matters concerning Indian law and international law, respectively.
For the second quarter of this financial year, the energy and power company had posted a 9% year-on-year fall in net profit to Rs 495.72 crore. In comparison, the same quarter of the previous fiscal, the company's net profit was Rs 542.55 crore.
Shares of Torrent Power Ltd. closed 0.25% lower at Rs 1,645.55 apiece on the BSE, compared to a 0.25% decline in the benchmark Sensex.
