Torrent Power recently concluded its Rs.3,500-crore ($413.20 million) Qualified Institutional Placement (QIP) issue, attracting bids of about Rs.14,000 crore – nearly four times the base issue size — from a mix of international and domestic investors.
In a release, Torrent Power said that the issue garnered significant response from investors including domestic mutual funds, global investors and insurance companies, demonstrating their strong confidence in the company’s fundamentals and India’s power sector.
The entire issue was placed with marquee long only investors such as SBI MF, Capital Group, SBI Pension, Kotak MF, Nippon MF, Norges Bank and Amundi.
This marks the maiden equity issue by the company and the first equity raise in last three decades by the Torrent Group. Torrent Power’s QIP is one of the largest fund raise conducted by a private utility player in India during the current financial year, the release observed.
“The successful completion of the issue underscores the company’s strong credentials and highlights the company’s future growth prospects as one of the fastest growing in the country’s power sector,” the release noted.
The QIP issue opened on December 2, 2024, and concluded on December 5, 2024. According to a recent regulatory filing, Torrent Power will be allotting 2,32,86,759 equity shares (around 232.87 lakh shares) at a price of Rs.1,503 per equity share (face value: Rs.10 per equity share and premium Rs.1,493 per equity share)
Market conviction
According to Samir Mehta, Chairman of Torrent Group, “We are delighted with the overwhelming response to our QIP. The strong response to the QIP is a testament to the market’s conviction in the Torrent’s growth strategy, execution capabilities, operational excellence and best-in-class capital allocation. This capital raise will strengthen our balance sheet and accelerate our growth plans. We are grateful to our investors in reposing their trust in us.”
QIP ussue managers
Kotak Mahindra Capital Company Ltd , Jefferies India Private Ltd and JM Financial Ltd were the lead managers for the QIP. Khaitan & Co. acted as Legal Counsel to the Company as to Indian law, Shardul Amarchand Mangaldas & Co and Sidley Austin LLP acted as Legal Counsels to the BRLMs as to Indian law and International law, respectively, the Torrent Power release added.
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