Torrent Power Issues ₹3,800 Crore in Secured NCDs via Private Placement
Torrent Power Limited has successfully issued and allotted Series 15 Secured Non-Convertible Debentures (NCDs) totaling ₹ 3,800 Crore. The issue was executed through a private placement mechanism on June 24, 2026, comprising four tranches: A, B, C, and D.The company issued a total of 380,000 NCDs, each valued at ₹ 1 Lakh, aggregating to the total issue size of ₹ 3,800 Crore. These debentures are defined as Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable, and Non-Convertible. Torrent Power has proposed listing these instruments on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited.
The NCDs were structured across four tranches, each with specific tenure, coupon rates, and maturity periods.
| Tranche | Number of NCDs | Maturity Date | Tenure | Coupon Rate |
|---|---|---|---|---|
| Series 15 Tranche A | 75,000 | June 24, 2029 | 3 Years | 8.10% p.a. (₹ 750 Cr) |
| Series 15 Tranche B | 100,000 | June 24, 2031 | 5 Years | 8.15% p.a. (₹ 1,000 Cr) |
| Series 15 Tranche C | 100,000 | June 24, 2033 | 7 Years | 8.20% p.a. (₹ 1,000 Cr) |
| Series 15 Tranche D | 105,000 | June 24, 2036 | 10 Years | 8.20% p.a. (₹ 1,050 Cr) |
All tranches were allotted on June 24, 2026, and the interest payment schedule for each series stipulates that the first coupon will be paid on June 24, 2027, with subsequent annual payments made until redemption.
Security and Covenants
The debentures are secured through a pari passu charge created over the company’s assets. This security covers present and future movable assets (including current assets) and immovable assets, excluding certain properties designated as belonging to Renewable Projects or Leasehold Assets of the Company. The charges include:
- A first pari passu charge on all present and future movable assets other than those related to Renewable Projects, debt service reserve funds, or NCD Reserve investments.
- A first pari passu charge on all present and future immovable assets other than properties of Renewable Projects, Leasehold Assets, the Bhiwandi Property (a plot in Thane), and the New Delhi Property (located at No. 2, Dharam Marg, Chanakya Puri).
The company has also outlined specific covenants related to rating changes. Should a domestic rating agency downgrade the Debentures post-issuance, the coupon rate would increase by 0.25% for every notch of downgrade. Conversely, if the debentures are subsequently upgraded and downgraded back, the Coupon Rate could be reduced by 0.25% per notch of upgrade, subject to a cap on the original coupon rate.
Furthermore, it is noted that in the event of a rating downgrade to 'BBB+' or below, Debenture Holders would have the right to call for an accelerated redemption. In case of default in interest or principal repayment, Torrent Power shall pay additional interest at a rate of 2% per annum over the Coupon Rate for the defaulting period.
TORNTPOWER Stock Price Movement
Torrent Power Limited shares slipped by 1.10% in trading today, ending the session at ₹1445.4. The stock saw a total traded volume of 268,242 shares as it closed the post-market period.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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