Torrent Power announced the initiation of equity offerings on a qualified institutional placement (QIP) basis, setting a floor price of Rs 1,555.75 per share. The company aims to raise up to Rs 50 billion in one or more tranches but has not disclosed the exact number of shares to be issued or the total size of the issue.

Speculations suggest the issue size is likely to range between Rs 35 billion and Rs 50 billion.

In a stock exchange filing, the company stated that the fund-raising committee of its board, during a meeting held on December 2, approved the opening of the issue. The committee also determined the floor price for the offering in line with the pricing formula prescribed by the capital market regulator, SEBI.

Earlier, in July, the company's shareholders had approved a proposal to raise up to R 50 billion through various means, including equity shares, foreign currency convertible bonds (FCCBs), debentures, or other equity-linked instruments.

Torrent Power had previously highlighted its on-going need for working capital and capital expenditure to support the upgradation and expansion of its power generation and distribution businesses, as well as its on-going projects.