Torrent Power Limited has finalized the allotment of 3,80,000 Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable, Non-Convertible Debentures (NCDs) designated as Series 15. The issuance, conducted on a private placement basis, has an aggregate value of ₹3,800 crore with a face value of ₹1 lakh per debenture. The allotment was completed on June 24, 2026, and the instruments are scheduled for listing on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited (NSE).
Technical Breakdown of Series 15 Tranches
The issuance is distributed across four distinct tranches with tenures ranging from three to ten years. Interest payments are scheduled annually, with the inaugural payment due on June 24, 2027.
| Tranche | Principal Amount (₹ Crore) | Tenure/Maturity | Coupon Rate (p.a.) |
| Tranche A | 750 | 3 Years (June 24, 2029) | 8.10% |
| Tranche B | 1,000 | 5 Years (June 24, 2031) | 8.15% |
| Tranche C | 1,000 | 7 Years (June 24, 2033) | 8.20% |
| Tranche D | 1,050 | 10 Years (June 24, 2036) | 8.20% |
Security Structure and Asset Charge
The NCDs are backed by a first pari passu charge on the company’s present and future movable and immovable assets. This security is shared equally with all term lenders, working capital lenders, and existing secured debenture holders.
Technical exclusions from this charge include:
- Renewable Project Assets: Movable and immovable assets associated with the Lalpur, Charanka, GENSU, Mahidad, and Suzlon projects.
- Financial Reserves: Funds held in debt service reserve accounts and investments specifically earmarked for NCD Reserves or created under other financing agreements.
- Specific Real Estate: Leasehold land at Atali Industrial Estate (plots B15 to B28), the Bhiwandi property in Thane, and the immovable property at Dharam Marg, New Delhi.
A second charge over the secured assets is reserved for entities providing hedging contracts to the company.
Credit Rating and Redemption Covenants
India Ratings and Research (Ind-Ra) has assigned a credit rating of IND AA+/Stable to the Series 15 issuance. The debentures include “Step-up/Step-down” provisions, where the coupon rate adjusts by 0.25% per annum for each notch of deviation from the IND AA+ baseline. Upward adjustments are triggered by downgrades, while rate decreases for upgrades are capped at the original coupon rate.
An accelerated redemption clause stipulates that if the credit rating falls to “BBB+” or below, debenture holders representing at least 51% of the nominal value may demand immediate repayment within 60 days. In the event of a default on interest or principal, a penalty interest rate of 2% per annum over the prevailing coupon rate will apply for the duration of the default.
Context of Acquisition Financing
This capital issuance coincided with the completion of Torrent Power’s acquisition of Nabha Power Limited from L&T Power Development Limited. The transaction involved the 100% transfer of equity and convertible instruments for a final consideration of ₹3,632.35 crore. The acquisition adds a 1,400 MW supercritical thermal power plant to the company’s operational portfolio.
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