Torrent Power raises ₹3,500 crore through a Qualified Institutional Placement (QIP) by issuing 2.32 crore equity shares at ₹1,503 per share. This capital injection will enable the company to strengthen its operational capacity, enhance infrastructure, and support its growth strategy.
Key details of the fundraising
On December 5, 2024, Torrent Power’s Fund Raising Committee approved the issuance of 2.32 crore equity shares to institutional buyers. These shares were priced at ₹1,503 each, which includes a ₹1,493 premium, offering a 3.4% discount compared to the floor price of ₹1,555.75. As a result, Torrent Power’s paid-up equity share capital has increased from ₹480.62 crore to ₹503.90 crore, giving the company a stronger financial base.
Strategic use of funds
The funds raised will primarily support Torrent Power’s working capital needs. Additionally, the company plans to use the capital to upgrade its power generation and distribution infrastructure. With increasing electricity demands, this investment will enable the company to expand its market share and improve energy efficiency, ultimately benefiting customers across its operational regions.
Approvals and expansion goal
Earlier in 2024, shareholders of Torrent Power approved a proposal to raise up to ₹5,000 crore through equity shares and other financial instruments. By completing this QIP, the company has taken a significant step toward meeting its capital raising target, which will help fund its ambitious expansion plans.
Outlook and market impact
With the new funds in place, Torrent Power is well-positioned to expand its energy services and improve infrastructure across India. Moreover, the company continues to focus on sustainability and innovation to maintain its leadership in the power sector. The raised capital will further drive the company’s efforts to meet future energy needs, ensuring long-term growth and profitability.
By effectively deploying the raised funds, Torrent Power is preparing for continued success in the fast-evolving energy sector.
