Torrent Power Opens QIP at INR 1,555.75 to Raise Up to INR 5,000 Crore

Torrent Power has initiated the process of raising funds through a Qualified Institutional Placement (QIP) by setting a floor price of INR 1,555.75 per share, as per its regulatory filing.

As per the firm, the company's board-approved fundraising effort seeks to mobilise up to INR 5,000 crore in one or more tranches, though details regarding the number of shares to be issued and the final issue size remain undisclosed.

As per reports, market speculations suggest that the QIP size could range between INR 3,500 crore and INR 5,000 crore. The floor price has been calculated as per the Securities and Exchange Board of India (SEBI) guidelines.

This decision follows the approval by Torrent Power’s shareholders in July 2024, authorising the company to raise funds via equity shares, foreign currency convertible bonds (FCCBs), debentures, or other equity-linked instruments, amounting to INR 5,000 crore.

Torrent Power stated that the funds are intended to meet the growing working capital requirements and support capital expenditures for the upgradation and expansion of its power generation and distribution businesses. The funds will also aid the development of ongoing projects.

Further, according to media reports, on December 4, 2024, Torrent Power’s stock was trading at INR 1,660.55 on the NSE, down 1.69 percent from the previous closing price. The stock’s 52-week range has been between INR 869.00 and INR 2,037.35, reflecting significant investor activity over the year.

The QIP marks a significant move by Torrent Power to enhance its financial flexibility and fuel its growth strategy in India’s evolving power sector.