Torrent Power, an energy company of Gujarat-based Torrent Group, is planning to raise Rs 3,000-4,000 crore through a qualified institutional placement (QIP) of shares. Moneycontrol has given this information quoting sources. The main objective of the proposed QIP is to raise cash for acquisitions. It also includes organic growth initiatives such as capital expenditure for new projects, working capital requirements, debt repayment, etc.

QIP may be launched in this quarter

According to the report, sources said that Torrent Power Investment Bank is working on raising funds in collaboration with Kotak Mahindra Capital and more banks are also likely to be included in it. It was said that the QIP can be launched in this quarter. Earlier this year, Torrent Power shareholders approved raising up to Rs 5,000 crore. Sources said that if the demand from investors remains strong, the company can raise the entire amount of Rs 5,000 crore. The company is looking for both organic and inorganic opportunities for its growth. Torrent Power had informed its shareholders about this in the notice of its Annual General Meeting held recently. Capex requirement It has been said that apart from this, there is a continuous need for working capital and capex for the upgradation / expansion of the company's power generation, distribution business and ongoing projects. Internal funds generation may not be sufficient to meet the requirements of the company's growth plan. Torrent has 362 megawatt (MW) of coal-based thermal power assets and 2,730 MW of gas-based power plants. Talking about renewable energy, it has 403 MW of solar power capacity and 921 MW of wind capacity. Torrent has 1,688 MW of solar projects and 1,339 MW of wind assets under development.