Torrent Power Ltd on Monday announced successful completion of its ₹3,500 crore (approximately $413.20 million) Qualified Institutions Placement (QIP).
“The issue garnered significant response from investors including domestic mutual funds, global investors and insurance companies, demonstrating their strong confidence in the Company’s fundamentals and India’s power sector. The QIP saw a very strong demand of approximately 4x the size of the issue (receiving bids of about ₹14,000 crore) against the base issue size of ₹3,500 crore from a mix of international and domestic investors,” the company stated in an official release.
Samir Mehta, Chairman of Torrent Group, stated, “We are delighted with the overwhelming response to our QIP. The strong response to the QIP is a testament to the market’s conviction in the Torrent’s growth strategy, execution capabilities, operational excellence and best-in-class capital allocation. This capital raise will strengthen our balance sheet and accelerate our growth plans. We are grateful to our investors in reposing their trust in us.”
The entire issue was placed with marquee long only investors such as SBI MF, Capital Group, SBI Pension, Kotak MF, Nippon MF, Norges Bank and Amundi.
This marks the maiden equity raise by the Company and first equity raise in the last three decades by the Torrent Group. Torrent Power’s QIP is one of the largest fund raise conducted by a private utility player in India during the current financial year, the release added. The QIP issue had opened on December 2 and concluded on December 5.