Torrent Power, which had closed on Friday at Rs.364.80, opened today at Rs.373 before going on to hit a new high at Rs.383. Its 10% UC for the day is at Rs.401.25.
The stock price surged after the company announced on Saturday that it has emerged as the highest iddber for the sale of 51% stake in the Power Distribution Company in the UT of Dadra & Nagar Haveli and Daman & Diu.
The acquisition of 51% stake in the power distribution company by Torrent is subject to further formalities as prescribed under the Tender documents.
The Bidding for the Distribution Business of the UT has been undertaken as part of the Government of India’s initiative to privatize distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country.
The company currently distributes nearly 16.66 billion units to over 3.65 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh. With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater a peak demand of over 5000 MW.
With this acquisition,Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2% of India’s total power consumption, with a presence in 12 cities spread across 3 States and 1 Union Territory.