Torrent Power has launched a Qualified Institutional Placement (QIP) on December 4, aiming to raise ₹3,500 crore by selling 4.6% of its equity stake. The issue price has been set at ₹1,503 per share, offering a 5.3% discount to its last closing price and a 3.4% discount to the floor price.
The floor price for the QIP is ₹1,555.75 per share, determined in compliance with SEBI regulations. Torrent Power intends to utilize the funds from this equity sale to repay certain borrowings of the company and its subsidiaries, as well as for general corporate purposes. Participants in the QIP will be subject to a 90-day lock-in period.
Reports suggest the funds raised will also support the company’s acquisition plans and organic growth, including capital expenditures for new projects and meeting working capital needs.
The stock has delivered strong performance this year, gaining 68.37% year-to-date and outperforming the Sensex’s 11.04% rise during the same period. On Monday, Torrent Power’s shares closed at ₹1,586.3 on the NSE, a 5% increase, taking its market capitalisation to ₹76,240 crore.
In its Q2 FY25 results, the company reported an 8.6% year-on-year decline in net profit to ₹496 crore. However, revenue from operations rose by 3.1%, reaching ₹7,175.81 crore compared to ₹6,960.92 crore in the same period last year.
This QIP comes as part of the company’s broader strategy, with shareholders earlier approving a ₹5,000 crore ceiling for such issuances.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
