Torrent Power announced on Friday that it has successfully raised Rs 3,500 crore through a Qualified Institutional Placement (QIP). The company issued a total of 2.32 crore equity shares at a price of Rs 1,503 per share.
This fundraising is a significant step in strengthening Torrent Power's financial position and will support its ongoing and future business growth plans.
The QIP was aimed at qualified institutional buyers, enabling the company to tap into the capital markets efficiently.
Following the allotment of these equity shares, Torrent Power’s paid-up equity share capital has increased substantially.
The capital has risen from Rs 480.62 crore, which consisted of 48,06,16,784 equity shares of Rs 10 each, to Rs 503.90 crore, now comprising 50,39,03,543 equity shares of Rs 10 each.
This increase in share capital reflects the company’s expansion and the successful conclusion of its capital-raising exercise.
The decision to issue and allot the equity shares was made by the Fund Raising Committee of Torrent Power's Board in a meeting held on December 5, 2024.
The committee approved the issuance of 2,32,86,759 equity shares to eligible institutional buyers at the price of Rs 1,503 per share. This price includes a premium of Rs 1,493 per share, representing a discount of Rs 52.75 per share (about 3.40%) to the floor price of Rs 1,555.75 per share.
This strategic move aims to raise approximately Rs 3,500 crore, further boosting the company’s ability to invest in its growth and operational needs.
