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

Updated on: Dec 6, 2024, 4:40 PM IST
Torrent Power raises ₹3,500 Crore through Qualified Institutional Placement for expansion and working capital. The share price is currently down 2%.
Torrent Power Raises ₹3,500 Crore Through Qualified Institutional Placement
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Torrent Power is a subsidiary of the Torrent Group, a multinational conglomerate based in India. It is a prominent participant in India’s power sector, engaging in the production, transmission, and distribution of electricity.

Torrent Power Announced Fundraising Via QIP

On 6 December 2024, Torrent Power announced that it has raised ₹3,500 crore by offering 2.32 crore equity shares at ₹1,503 each through a Qualified Institutional Placement (QIP).

As a result of the equity share allotment from this issue, the company’s paid-up equity share capital has risen from ₹480.62 crore, consisting of 48,06,16,784 shares at ₹10 each, to ₹503.90 crore, made up of 50,39,03,543 shares at ₹10 each, as noted in a filing with the BSE.

Torrent Power Board Approved

The Fund Raising Committee of the Board approved the issuance and allocation of 2,32,86,759 equity shares to qualifying institutional buyers at an issue price of ₹1,503 per share (which includes a premium of ₹1,493 per share), representing a discount of ₹52.75 per share or 3.40% below the floor price of ₹1,555.75 per share, amounting to approximately ₹3,500 crore subsequent to the issue.

Torrent Power Q2 FY25 Results

In Q2 FY25, Torrent Power’s net profit fell 8.6% on-year to ₹496 crore. The revenue from operations gained to ₹7,175.81 crore, higher by 3.1%, compared to ₹6,960.92 crore in the year-ago period.

In July this year, shareholders of the company approved the proposal to raise up to ₹5,000 crore through the issuance of equity shares and/or foreign currency convertible bonds (FCCBs) and/or debentures or any equity-linked instruments.

Objective of Fundraising

The company had earlier said that there was an ongoing requirement of working capital and capex for the upgradation/expansion of its power generation, distribution businesses, and ongoing projects.

Torrent Power Share Price Update and Performance

At 2:33 pm, Torrent Power shares are trading at ₹1,639.85 on the NSE, down more than 2%. Torrent Power’s stock has risen by 68.37% this year, outperforming the benchmark Sensex, which has risen by 11.04% over the same period.

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.

Published on: Dec 6, 2024, 4:40 PM IST

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