Torrent Power Plans Rs 650 Crore NCDs Raise
Torrent Power, a company based in Ahmedabad engaged in power generation and distribution, intends to raise approximately Rs 650 crore by issuing non-convertible debentures (NCDs), according to sources familiar with the matter. The NCDs might be released in segments spanning two, three, and five years. Market insiders suggest that the company, in its efforts to expand into the renewable energy sector, could potentially utilize the funds raised from this issuance for that purpose.
Axis Bank and Barclays are potentially the organizers of the NCD issue, as per sources. However, attempts to reach Torrent Power, Axis Bank, and Barclays via email remained unanswered at the time of this information's publication. Torrent Power has set ambitious targets, aiming to increase its renewable energy capacity from the current two gigawatts (GW) to five gigawatts within the upcoming four to five years. In a strategic move, the company has also ventured into the green hydrogen sector. Recently, it established a wholly owned subsidiary, Torrent Green Hydrogen, with a focus on the production, storage, and transportation of green hydrogen.
Beyond its ventures into renewable energy, Torrent Power operates within the thermal power segment, possessing a generation capacity of 3092 MW. The company employs a distinctive blend of coal and gas-based power plants in this sector. In its endeavors towards diversification, Torrent Power entered the electric mobility infrastructure domain to establish electric vehicle (EV) charging stations. Collaborating with Siemens, the company is actively developing an EV charging network. Notably, it has initiated a pilot project involving the integration of 2.5% green hydrogen with natural gas within the city gas distribution (CGD) network in Gorakhpur, Uttar Pradesh. This pilot project utilizes an Alkaline Electrolyzer to produce green hydrogen through the electrolysis of water, powered by renewable sources.