Shares of a leading integrated power utility company hit its lowest in 5 days at Rs. 987.10 and moved down by 0.36 percent to Rs. 1,009.95 in the morning session from its previous close of Rs. 1,013.55.
India’s Torrent Power plans to raise Rs. 750 crore to pay off its debt through the sale of bonds maturing in two years, three years, four years and five years, according to Reuters. The company has invited bids from the bankers and investors on Wednesday.
It has also been mentioned that the company will pay an annual coupon of 8.4 percent for each issue, while the goal is to raise Rs. 175 crores each through the two-year and three-year notes, whereas Rs. 200 crores each through the other two maturities.
However, Torrent Power had already raised Rs. 600 crores in the month of June last year, through the sale of bonds maturing in eight, nine and ten years at an annual coupon of 8.5 percent.
Financially, the company has been maintaining a healthy dividend payout of 65.1 percent and is expected to give a good quarter. However, the company has a low return on equity of 13.9 percent over the last 3 years.
The revenue from operations grew 80 percent from Rs. 14,258 crores in FY21-22 to Rs. 25,694 crores in FY22-23, accompanied by an increase in profits of 371.91 percent from Rs. 459 crores in FY21-22 to Rs. 2,165 crores in FY22-23.
As of December 2023, FIIs hold 6.13 percent of the shares whereas DIIs hold 21.62 percent, aggregating to 21.75 percent of institutional holding.
The company has spent 3.18 percent of its operating revenue towards interest expenses and 2.25 percent towards employee costs in the year ending 31st March 2023.
One of the leading brands in the Indian power sector, Torrent Power serves two of the most critical needs – healthcare and power. It is also one of the largest private sector players in India with a presence in power generation, transmission, distribution, and manufacturing and supply of power cables.
It has a generation capacity of 3,703 MW and distributes over 16.6 billion units of power annually to six different locations.
Written by Shivani Singh
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