Torrent Power garners robust investor confidence with maiden Rs 3,500cr QIP

Torrent Power Limited, a prominent player in India’s private sector power utilities, has successfully completed its maiden equity raise through a ₹3,500 crore Qualified Institutional Placement (QIP). This marks a milestone for the Torrent Group, as it is the first equity raise in over three decades by the conglomerate.

The QIP, which opened on 2 December 2024 and concluded on 5 December 2024, witnessed overwhelming interest from marquee global and domestic investors. The offering was oversubscribed by four times, receiving bids worth approximately ₹14,000 crore against the initial issue size. Renowned investors such as SBI Mutual Fund, Capital Group, Nippon MF, and Norges Bank participated, reflecting their confidence in Torrent Power’s strategic growth trajectory and operational excellence.

Strong market response highlights investor confidence

The Chairman of Torrent Group, Samir Mehta, shared that the overwhelming response underscores the market’s belief in the company’s growth strategy and execution capabilities. He added that the funds would reinforce the balance sheet and propel Torrent Power’s expansion plans in the energy sector.

This fundraise is considered one of the largest by a private utility player in India during the current financial year. The development also bolsters Torrent Power’s position as a rapidly growing integrated power utility, which operates across power generation, transmission, and distribution.

Expanding renewable footprint and operational excellence

Torrent Power boasts an installed generation capacity of 4.6 GW, comprising 2.7 GW of gas-based power, 1.5 GW of renewable energy, and 362 MW of coal-based capacity. The company is actively expanding its renewable portfolio, with approximately 3 GW of renewable projects and 3 GW of pump storage hydro projects in development.

In distribution, Torrent Power delivers 30 billion units annually to over 4.13 million customers across multiple states and union territories, including Gujarat, Maharashtra, and Uttar Pradesh. The company is lauded for maintaining industry-leading reliability indices and the lowest AT&C losses in its licensed territories.

Legal and financial advisors

The QIP was managed by Kotak Mahindra Capital Company, Jefferies India, and JM Financial. Legal counsel was provided by Khaitan & Co. for the company, alongside Shardul Amarchand Mangaldas & Co. and Sidley Austin LLP for the lead managers.

Torrent Power’s achievement not only marks a significant financial milestone but also underscores its commitment to becoming a leader in India’s power sector, especially amid increasing demand for renewable energy solutions.