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  5. Torrent Power shares in focus as company opens QIP to raise up to ₹5,000 crore; check details 

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Torrent Power shares in focus as company opens QIP to raise up to ₹5,000 crore; check details 

Upstox
By Upstox News Desk

3 min read | Updated on December 03, 2024, 08:51 IST

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SUMMARY

According to the company, the committee also approved the floor price for the issue at ₹1,555.75 per equity share, based on the pricing formula prescribed by the capital market regulator SEBI. In July this year, shareholders of the company approved the proposal to raise up to ₹5,000 crore through the issuance of equity shares and/or foreign currency convertible bonds (FCCBs) and/or debentures or any equity-linked instruments.

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TORNTPOWER
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The company reported about a 9% dip in consolidated net profit to ₹495.72 crore in the September quarter.

The company reported about a 9% dip in consolidated net profit to ₹495.72 crore in the September quarter.

Torrent Power share price: Shares of Torrent Power will be on investors' radar on Tuesday, December 3, as the company on Monday announced the opening of equities on a qualified institutional placement (QIP) basis at a floor price of ₹1,555.75 apiece as part of its plan to raise up to ₹5,000 crore in one or more tranches.
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 ₹3,500 crore and ₹5,000 crore, said a PTI report. 
The fundraising 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.

According to the company, the committee also approved the floor price for the issue at ₹1,555.75 per equity share, based on the pricing formula prescribed by the capital market regulator SEBI.

In July this year, shareholders of the company approved the proposal to raise up to ₹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, the PTI report said further. 

Torrent Power Q2 FY25 Results

The company reported about a 9% dip in consolidated net profit to ₹495.72 crore in the September quarter compared to the year-ago period as the extended monsoon season curbed electricity demand and capacity utilisation of renewables.

The company had a consolidated net profit of ₹542.55 crore in the quarter ended on September 30, 2023. 

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Total income increased to ₹7,300.51 crore in the period under review from ₹7,069.11 crore a year ago. Total expenses rose to ₹6,611.83 crore in the quarter from ₹6,328.44 crore in the same period a year ago.

The company stated that the increase in contribution from licensed distribution businesses was offset by lower contribution from thermal generation, mainly on account of reduced sales of merchant power (including the sale of LNG) due to lower electricity demand in the current quarter on account of extended and heavy monsoon against the comparable quarter last year.

(With PTI inputs)

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