Torrent Power Rs 3,500 cr QIP over subscribed 4 times

Torrent Power on Monday said its Rs 3,500 crore qualified institutional placement (QIP) issue was oversubscribed four times. The issue received bids of about Rs 14,000 crore against the base issue size of Rs 3,500 crore, a company statement said.

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, it said.

The entire issue was placed with 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 last three decades by Torrent Group.

The QIP is one of the largest fund raise conducted by a private utility player in India during the current financial year. The issue had opened on December 2 and concluded on December 5.

“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,” Samir Mehta, Chairman of Torrent Group, said in the statement.

Kotak Mahindra Capital Company Ltd, Jefferies India Private Ltd and JM Financial were the lead managers for the QIP.