Torrent Power may raise Rs 3,500 crore, launches QIP for 4.6% equity stake sale; check share price

Torrent Power will use the proceeds from the QIP for repaying borrowings, and general corporate purposes.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Torrent Power on Monday opened its Qualified Institutional Placement (QIP), seeking to raise potentially Rs 3,500 crore by selling 4.6 percent of the company’s equity stake. The issue’s indicative price has been set at Rs 1,503 per share, representing a 5.3 percent discount to the stock's last closing price and a 3.4 percent discount to the floor price, reported CNBC TV18.

The floor price for the QIP was set at Rs 1,555.75 per equity share, as announced earlier, representing a 1.6 percent discount to Torrent Power’s closing price of Rs 1,586.3 on NSE on Monday. The company determined the floor price based on SEBI regulations, it said in a stock exchange filing.

The proceeds from the QIP will be used for repaying certain borrowings of Torrent Power and its subsidiaries and for general corporate purposes. The issue includes a 90-day lock-in period for participants.

Also read | Godrej Properties QIP saw four-fold demand, Pirojsha says funds to help in growth

Reports earlier suggested that Torrent Power, the energy arm of the Gujarat-based Torrent Group, planned to raise between Rs 3,000 crore and Rs 4,000 crore through the QIP to fund acquisitions and organic growth initiatives, including capital expenditure for new projects and working capital requirements.

Torrent Power shares jumped 5 percent to end at Rs 1,586.3 on the NSE on Monday, taking the company's market capitalisation to Rs 76,240 crore. The stock has gained 68.37 percent so far this year, significantly outperforming the benchmark Sensex, which rose 11.04 percent during the same period.

The QIP was approved by shareholders earlier this year with a ceiling of Rs 5,000 crore.

In Q2 FY25, Torrent Power's net profit fell 8.6 percent on-year to Rs 496 crore. The revenue from operations gained to Rs 7,175.81 crore, higher by 3.1 percent, compared to Rs 6,960.92 crore in the year-ago period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.