Torrent Power Plans ₹4,000 Crore QIP for Expansion and Acquisitions

22 Oct 2024 , 08:05 PM

Torrent Power, part of the Gujarat-based Torrent Group, plans to raise ₹3,000-₹4,000 Crore through a Qualified Institutional Placement (QIP) of shares.

The QIP proceeds will be utilized for funding acquisitions, capital expenditure on new projects, and supporting organic growth initiatives. The raised funds will also cover working capital requirements and help with debt repayment.

The company is collaborating with Kotak Mahindra Capital for the QIP, with more banks expected to join the process. Torrent Power’s shareholders had earlier approved a fundraise of up to ₹5,000 crore, indicating potential to increase the QIP amount if investor demand is strong.

Kotak Mahindra Capital is currently advising Torrent Power on the fundraising process, with more banks expected to join. The QIP may launch within this quarter, depending on market conditions.

Earlier, Torrent Power’s shareholders approved a potential fundraise of up to ₹5,000 Crore, allowing the company to raise the entire amount if investor demand is strong.

Torrent Power is actively pursuing both organic and inorganic growth strategies to expand its power generation and distribution businesses. The company requires funds for the development and upgrade of its conventional and renewable power assets, including coal, gas, solar, and wind projects.

Torrent Power operates 362 MW of coal-based and 2,730 MW of gas-based power plants, along with 403 MW of solar and 921 MW of wind power capacity.

Additionally, Torrent Power has 1,688 MW of solar and 1,339 MW of wind projects under development. It has also been awarded 18 KTPA green hydrogen capacity under India’s production-linked incentive (PLI) scheme.