Torrent Power eyes Rs 3,000-4,000 cr fundraise through QIP

Dedicated to its mission of transforming lives by meeting two of the most important needs—power and healthcare—Torrent Power is one of the top brands in the Indian power industry. It is supported by the Rs. 41000 Crore Torrent Group. One of the biggest companies in India’s private sector, it is an integrated power utility with interests in power generation, transmission, distribution, and cable manufacturing and supply.

Torrent Power is using QIP for fundraising

The Gujarat-based Torrent Group’s energy subsidiary, Torrent Power, intends to raise between Rs 3,000 and Rs 4,000 crore by offering shares for qualified institutional placement (QIP). Fundraising for acquisitions is the primary goal of the proposed QIP. It also covers initiatives for organic growth like debt repayment, working capital needs, capital expenditures for new projects, etc.

Torrent Power can raise Rs. 5,000 crore

As per the report’s sources, Torrent Power Investment Bank is reportedly collaborating with Kotak Mahindra Capital to raise funds, and it is probable that additional banks will be involved as well. This quarter is when the QIP is expected to launch, according to reports. Earlier this year, the shareholders of Torrent Power approved an increase of up to Rs 5,000 crore. The company can raise the full Rs 5,000 crore, according to sources, if investor demand stays high. 

The business is searching for both inorganic and organic growth prospects. This was disclosed to Torrent Power’s shareholders in the notice of its most recent annual general meeting. It has been stated that, in addition to this, working capital and capital expenditures are continuously required for the company’s power generation, distribution, and ongoing projects to be upgraded and expanded. 

Expansion of Torrent Power’s business

It is possible that the company’s expansion plan will need more funding than it makes internally. Torrent has 362 MW of thermal power assets based on coal and 2,730 MW of gas-based power plants. It can generate 403 MW of solar power and 921 MW of wind power, which is considered renewable energy. Torrent is working on 1,339 MW of wind assets and 1,688 MW of solar projects.

Torrent Power Ltd. hits a 52-week peak

The 52-week high for Torrent Power Ltd.’s stock was Rs. 2,037.00 per share. As of right now, the price is correcting and is trading at Rs. 1,950.25, or nearly 1% less than it was earlier today.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.