Torrent Power Targets ₹40 Billion Bond Sale To Fund Nabha Deal

Torrent Power is preparing to raise up to ₹40 billion (about $421.8 million) through a bond sale. This could be its largest issue so far in the current financial year.

The offering is likely to open in May. It comes after the company got approval to acquire Nabha Power. Demand for electricity is also rising across states, which adds to the timing.

The bonds have AA+ ratings from CRISIL and India Ratings. The structure may include longer tenures with repayments spread out over time.

Shares of Torrent Power have risen 28.49% in April 2026, with investors watching its expansion plans more closely than daily price shifts. At 11:15 AM on 30 April, Torrent Power shares were up 0.96% at ₹1,718.10.

Why Is Torrent Power Raising Fresh Debt?

The fundraising links directly to its plan to buy Nabha Power from Larsen & Toubro in a deal valued at around ₹69 billion, including debt. Nabha runs a 1,400 MW coal-based plant in Punjab and sells its entire output under a long-term contract.

For Torrent, this is less about a one-off purchase and more about building scale in thermal power. Demand for steady, round-the-clock supply has been rising, especially during peak months when renewable output alone cannot meet requirements.

How Might The Bond Issue Be Structured?

Bankers working on the deal expect a mix of tenors. A portion could be placed with mutual funds, while longer-duration papers may attract insurance and pension money. Discussions are still ongoing, but the structure is expected to resemble its March issue.

In March, Torrent Power raised ₹20 billion through bonds maturing over 8, 9 and 10 years, offering a 7.97% coupon. The new issuance is likely to be larger, reflecting both funding needs and improving appetite for high-rated corporate debt.

Also Read - MakeMyTrip Eyes India IPO, Targets First Quarter Of 2027 Listing

What Does This Signal For The Sector?

Utilities have been recalibrating their plans over the past year. Renewable capacity continues to expand, yet coal-based plants remain critical for stability. Torrent Power’s move suggests companies are willing to use debt markets actively to secure assets that can deliver predictable output.

Whether others take a similar route will depend on how demand trends evolve in the coming quarters.

Sources:

The Economic Times

The Hindu Business Line