Torrent Power Limited has informed the Exchange about Credit Rating
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CRISIL Ratings has assigned a CRISIL AA+/Stable rating to proposed non-convertible debentures (NCDs) of Rs. 4,000 crore and reaffirmed existing ratings on NCDs worth Rs. 4,735 crore at the same level. Short-term bank facilities and commercial paper were also reaffirmed at CRISIL A1+. The company is acquiring Nabha Power Ltd for Rs. 6,889 crore to expand capacity from 5 GW to 6.4 GW. Financial metrics show improvement with net debt to EBITDA at 1.4x (down from 2.2x) and EBITDA rising to Rs. 5,436 crore. A QIP in fiscal 2025 raised Rs. 3,500 crore with 75% used for debt reduction. However, planned capex of Rs. 65,000 crore over 2026-2032 is expected to push net leverage above 4.0x by fiscal 2030.
The reaffirmation at AA+/Stable with stable outlook signals strong creditworthiness. Investors can view this positively as the company maintains healthy leverage while funding growth. The new NCD rating opens funding avenues for the acquisition and capex plans.