Torrent Power Plans Rs 5,000 Crore Equity Raise, Appoint Jinal Mehta as Vice Chairman

Torrent Power will seek shareholders' approval to raise up to Rs 5,000 crore through equity shares at the annual general meeting on July 30, 2024. The funds will support working capital and expansion plans. Additionally, Jinal Mehta is to be appointed as Vice Chairman and Managing Director.

Torrent Power has announced its intention to raise up to Rs 5,000 crore through equity shares, pending shareholders' approval at the annual general meeting scheduled for July 30, 2024.

According to a company notice, the funds are necessary to meet the working capital and capex needs for the expansion and upgrading of its power generation and distribution businesses.

The shortage of internal funds necessitates securing additional resources through both equity and debt from domestic and international markets. The board recommended the issuance of equity shares, Foreign Currency Convertible Bonds (FCCBs), or other equity-linked instruments.

Furthermore, the company will seek approval to elevate Jinal Mehta to the position of Vice Chairman and Managing Director. His reappointment had been approved for a five-year term starting April 1, 2023. In the upcoming AGM, members' consent will also be sought for the appointment and remuneration of Jigish Mehta as Whole-time Director, designated as Director (Generation).

(Disclaimer: With inputs from agencies.)