Torrent Power issues ₹3,800 Cr NCDs via private placement
Torrent Power has successfully allotted Series 15 NCDs worth ₹3,800 crore on a private placement basis. The debentures, issued on June 24, 2026, feature coupon rates ranging from 8.10% to 8.20% across four tranches with maturities between 3 and 10 years. The issuance is secured by a first pari passu charge on the company's assets and includes provisions for step-up coupons and accelerated redemption in case of rating downgrades.
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Torrent Power has allotted 3,80,000 Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable and Non-Convertible Debentures (NCDs) aggregating to ₹3,800 crore on June 24, 2026. The issuance was conducted on a private placement basis across Series 15 in Tranches A, B, C, and D, enabling the company to raise capital at varying coupon rates and tenures to meet its funding requirements.
NCD Issuance Details
The debentures have a face value of ₹1 lakh each and are secured by a first pari passu charge on the company's present and future movable and immovable assets, excluding specific renewable and leasehold properties. The instruments are proposed to be listed on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited.
| Parameter | Details |
|---|---|
| Instrument | Non-Convertible Debentures (NCDs) |
| Issue Size | ₹3,800 crore |
| Placement Type | Private Placement |
| Number of NCDs | 3,80,000 |
| Face Value | ₹1 Lakh per Debenture |
| Security | First Pari Passu Charge on Assets |
Coupon Rates and Maturity
The NCDs are divided into four tranches with maturity periods ranging from 3 to 10 years. The coupon rates vary from 8.10% to 8.20% per annum, depending on the tenure. Interest payments are scheduled annually, starting June 24, 2027.
| Tranche | Number of NCDs | Amount (₹ Cr) | Tenure | Maturity Date | Coupon Rate p.a. |
|---|---|---|---|---|---|
| Series 15 Tranche A | 75,000 | 750 | 3 Years | 24-06-2029 | 8.10% |
| Series 15 Tranche B | 1,00,000 | 1,000 | 5 Years | 24-06-2031 | 8.15% |
| Series 15 Tranche C | 1,00,000 | 1,000 | 7 Years | 24-06-2033 | 8.20% |
| Series 15 Tranche D | 1,05,000 | 1,050 | 10 Years | 24-06-2036 | 8.20% |
Security and Covenants
The security structure includes a first pari passu charge on movable and immovable assets, shared with term lenders and working capital lenders. Specific exclusions from the security cover include assets of renewable projects such as the GENSU, Mahidad, and Suzlon projects, as well as designated leasehold and specific properties like the Bhiwandi Property and New Delhi Property. A second charge over the security is available to entities providing hedging contracts.
The debentures include provisions for step-up coupons in the event of a rating downgrade. For each notch downgrade, the coupon rate increases by 0.25%, while a subsequent upgrade reduces the rate by 0.25%, capped at the original coupon. If the rating falls to “BBB+” or below, debenture holders holding at least 51% of the outstanding value can call for accelerated redemption, requiring the company to repay the principal within 60 days.
Historical Stock Returns for Torrent Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.73% | +2.54% | -3.62% | +12.07% | +1.94% | +215.67% |
How will Torrent Power utilize the ₹3,800 crore raised, and what specific projects or capital expenditures will this funding support?
What impact will the step-up coupon provisions and potential rating downgrade triggers have on the company's future cost of borrowing?
Why were specific renewable energy projects excluded from the security cover, and does this indicate a strategic separation or future divestment plans?
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