Torrent Power shares hit 52-week high
New Delhi: Shares of Torrent Power Ltd on Monday surged over 5 percent during morning trade after the firm said it has emerged as the highest bidder for a 51 percent stake in a power distribution company in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
On BSE, the scrip rose 5.66 percent to a 52-week high value of Rs 385.45.
On NSE as well, the shares of the firm increased 5.52 percent to its 52-week high value of Rs 385.6.
The Bidding for the Distribution Business of the union territory (UT) has been undertaken as part of the government of India's initiative to privatize distribution utilities of UTs to usher in efficiency, which will provide a model for emulation by other utilities across the country.
On Saturday, the company in a regulatory filing said that the acquisition of a 51 percent stake in the power distribution company is subject to further formalities as prescribed under the tender documents.
The income of the UT has an annual revenue of about Rs 4,500 crore at a sale of around 9,000 million units of electricity every year to 1.5 lakh consumers covering a geographical area of 603 square kilometers.
Samir Mehta, the chairman of Torrent Group, said that with this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2 percent of India's total power consumption.
