Tata Power stock in focus as subsidiary clears allotment of shares to GreenForest

Shares of Tata Power were in focus today after subsidiary Tata Power Renewable Energy cleared the allotment of 20 crore compulsorily convertible preference shares. Tata Power stock climbed 1.06 per cent to Rs 204.65 against the previous close of Rs 202.50 on BSE today. Stock of Tata Power has lost 8.47 per cent in a year and fallen 1.71 per cent in 2023.

Total 1.22  lakh shares of the firm changed hands amounting to a turnover of Rs 2.71 crore on BSE. Market cap of the firm climbed to Rs 65,248 crore in early trade today.

In terms of technicals, the relative strength index (RSI) of the stock stands at 45.6, signaling the stock is neither oversold nor overbought. Tata Power has a one-year beta of 1.1, indicating high volatility during the period. Tata Power shares are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.

The shares have a face value of Rs 100 each, amounting to Rs 2,000 crore on a preferential basis to GreenForest New Energies Bidco. GreenForest is incorporated under the laws of England and Wales. With this, both the tranches of investment of Rs 2,000 crore each in Tata Power Renewable Energy made by GreenForest are completed.

Meanwhile, a report by The Economic Times said Tata Power has submitted expression of interest (EoI) to purchase a controlling stake in PTC India.

JSW Energy, Greenko and the Torrent Group are also in the fray to acquire the firm. The Adani Group, which was also expected to participate in the bidding process, has not submitted an EoI, added the report.

In the third quarter of the current fiscal, Tata Power reported a 91% year-on-year (YoY) rise in its consolidated profit after tax to Rs 1,052 crore against a net profit of Rs 551.89 crore in the corresponding quarter of the previous fiscal.
Consolidated revenue climbed 30% to Rs 14,339 crore against Rs 11,015 crore in Q3FY22 led by capacity addition in the renewables business, higher generation in thermal plants and higher sales in distribution companies.

Consolidated EBITDA rose 53% to Rs 2,818 crore as compared to Rs 1,841 crore in Q3 FY22 on account of better performance across all business verticals.

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