Power Stock In Focus After Raising Rs 3,800 Crore Through NCDs On Private Placement Basis
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Torrent Power has successfully issued and allotted 3,80,000 non-convertible debentures (NCDs) aggregating to Rs 3,800 crore through a private placement, with maturities ranging from 3 to 10 years.
✨ Key Takeaways
On Wednesday, Indian equity benchmarks ended higher, with the Nifty 50 rising 0.83 per cent to 24,021.65. Despite the broader market strength, shares of Torrent Power Limited were trading at Rs 1,444.20, down 0.73 per cent during the session.
Torrent Power Raises Rs 3,800 Crore Through NCD Issue
Torrent Power informed the exchanges that it has issued and allotted 3,80,000 secured, rated, listed, Taxable, non-cumulative, redeemable and non-convertible debentures (NCDs) with a face value of Rs 1 lakh each, aggregating to Rs 3,800 crore, through a private placement on June 24, 2026.
The company stated that the issue comprises four tranches with maturities ranging from three years to ten years. The proceeds have been raised through secured debt instruments carrying annual coupon rates between 8.10 per cent and 8.20 per cent.
Details Of The NCD Issue
Under the transaction, Torrent Power allotted 75,000 NCDs under Tranche A maturing in June 2029, 1,00,000 NCDs under Tranche B maturing in June 2031, 1,00,000 NCDs under Tranche C maturing in June 2033, and 1,05,000 NCDs under Tranche D maturing in June 2036. The debentures will be listed on the Wholesale Debt Market segment of the National Stock Exchange.
The coupon rates have been fixed at 8.10 per cent for Tranche A, 8.15 per cent for Tranche B, and 8.20 per cent for Tranches C and D. Interest payments will be made annually, with the first coupon payment scheduled for June 24, 2027.
Secured Issue Backed By Company Assets
According to the filing, the NCDs are secured through a first pari-passu charge on specified movable and immovable assets of the company, excluding certain renewable energy assets and identified properties. The security structure has been created in favour of debenture holders and lenders, providing additional protection to investors.
The company also stated that in the event of a rating downgrade, coupon rates may increase by 0.25 per cent for every notch downgrade, while debenture holders could seek accelerated redemption if the rating falls to BBB+ or below.
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About The Company
Torrent Power Limited is one of India's leading integrated power utilities engaged in power generation, transmission and distribution. The company operates thermal, gas-based and renewable energy assets and supplies electricity to millions of consumers across multiple states.
The company has been expanding its renewable energy portfolio while strengthening its distribution business through operational efficiency and network expansion. Torrent Power continues to focus on long-term growth opportunities in conventional and clean energy segments, supported by a diversified asset base and stable cash flows.
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Disclaimer: The article is for informational purposes only and not investment advice