Torrent Power Plans Rs 650 Crore NCD Issue for Green Energy Expansion

3 Jan 2024 , 01:52 PM

Torrent Power, based in Ahmedabad, plans to raise Rs 650 crore through the issuance of non-convertible debentures (NCDs) to support its expansion in the green energy segment.

The NCDs may be issued in tranches of two years, three years, and five years, with Axis Bank and Barclays likely to be the arrangers of the issue.

Torrent Power aims to double its renewable energy capacity from the current two gigawatts (GW) to five gigawatts in the next four to five years. The funds raised may contribute to this expansion.

The company recently established a wholly-owned subsidiary, Torrent Green Hydrogen, focusing on the manufacturing, storage, and transportation of green hydrogen.

Torrent Power operates in the thermal power segment with a generation capacity of 3,092 MW, including a mix of coal and gas-based power plants.

The company entered the electric mobility infrastructure sector, collaborating with Siemens to develop an EV charging network.

Torrent Power has initiated a pilot project for blending 2.5% green hydrogen with natural gas in the city gas distribution (CGD) network in Gorakhpur, Uttar Pradesh, using Alkaline Electrolyzer.

The company plans to be a leading end-to-end green hydrogen (GH2) solution provider, targeting industrial & commercial players in India and exploring green ammonia export.

Over the next five years, Torrent Power plans to set up three pumped storage hydro projects with a total capacity of 5,700 MW in Maharashtra, requiring an investment of about Rs 27,000 crore.

The company’s scrip closed at Rs 938, down 0.45% on the BSE, while the benchmark Sensex ended 0.53% lower.

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