Torrent Power, the energy arm of the Gujarat-based Torrent group, is planning to raise as much as Rs 3,000-4,000 crore through a qualified institutional placement (QIP) of shares, people aware of the matter told Moneycontrol.
The proposed QIP is aimed primarily at building a cash stockpile for acquisitions, as well as for organic growth initiatives such as capital expenditure for new projects, working capital requirements, debt repayment, etc.
Torrent Power is working with the investment bank Kotak Mahindra Capital on the fundraise and more banks are likely to be brought on board, the sources said. The QIP may be launched sometime this quarter, they added.
Earlier this year, Torrent Power’s shareholders had approved a fundraise of up to Rs 5,000 crore. The company may raise the full amount of Rs 5,000 crore if there is strong investor demand, the sources added.
“The company has been pursuing both organic and inorganic opportunities for its growth,” Torrent Power informed it's shareholders in the notice for its annual general meeting held recently.
“Further, there is ongoing requirement of working capital and capex for upgradation / expansion of the company’s power generation and distribution businesses, and ongoing projects. The generation of internal funds may not be adequate to meet the requirements of the company’s growth plans,” it added.
Emails sent to Torrent Power did not elicit a response till the time of publication.
Torrent’s power business spans conventional coal and gas power generation, renewable assets, transmission, as well as green hydrogen projects.
Torrent has 362 megawatts (MW) of coal-based thermal power assets and 2,730 MW of gas-based power plants.
On the renewable side, it has 403 MW of solar power capacity and 921 MW of wind capacity.
Torrent has 1,688 MW of solar projects and 1,339 MW of wind assets under development.
As for green hydrogen, it has been awarded a capacity of 18 KTPA (kilo tonnes per annum) under the union government's production linked incentive scheme.
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