Torrent Power up 6% after launching QIP at floor price of Rs 1555.75 apiece

Torrent Power shares jumped 5.8 per cent on Tuesday and logged an intraday high at Rs 1,678.85 per share. The buying sparked after the company launched its qualified institutional placement (QIP).

 

Around 11:42 AM, Torrent Power share price was up 5.05 per cent at Rs 1,666.5 per share. In comparison, the BSE Sensex was up 0.63 per cent at 80,755.83. The market capitalisation of the company stood at Rs 80,094.79 crore. The 52-week high of the stock stood at Rs 2,037.35 per share and 52-week low of the stock stood at Rs 869.35 per share.

 

"The fund raising committee of the board, at its meeting held on December 2 has, inter alia, considered and approved authorising the opening of the issue today," Torrent Power said in a stock exchange filing.

 

On Monday, after market hours, Torrent Power's board gave the nod to raise up to Rs 5,000 crore through QIP. The floor price of the issue is fixed at Rs 1,555.75 per share which translates to 1.9 per cent discount from previous close. 

 

The company did neither disclose the number of shares to be issued nor the total issue size. However, there are speculations that the issue size is expected to range between Rs 3,500 crore and Rs 5,000 crore. 

 

In July this year, shareholders of the company had approved the proposal to raise up to Rs 5,000 crore through the issuance of equity shares and/or foreign currency convertible bonds (FCCBs) and/or debentures or any equity-linked instruments.

 

The company had earlier said that there was an ongoing requirement of working capital and capex for the upgradation/expansion of its power generation, distribution businesses, and ongoing projects.

 

Torrent Power is an Indian company that operates in the generation, transmission, and distribution of electricity. Part of the larger Torrent Group, it runs thermal and renewable energy plants across India, with a strong presence in states like Gujarat and Maharashtra. The company serves millions of consumers, particularly in urban areas, through its electricity distribution networks in cities like Ahmedabad, Surat, and Agra.

 

The company is also investing in renewable energy, especially solar power, to diversify its energy portfolio and contribute to sustainability goals. Listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Torrent Power is known for its efficient operations and quality service in the Indian power sector.

 

In the past one year, Torrent Power shares have gained 64 per cent against Sensex's rise of 16.5 per cent.