Tata Power shares in focus today as arm to set up renewable project for Tata Steel

Shares of Tata Power Ltd are in focus today after Tata Power Renewable Energy through its subsidiary TP Vardhaman Surya received a contract to set up a 966 MW round-the-clock hybrid renewable power project for Tata Steel. Tata Power stock ended 1.01% higher at Rs 220.60 in the previous trading session on BSE. The Tata Group stock touched an intraday high of Rs 226.15, rising 3.55% on BSE.  

Stock of Tata Power has lost 5.32% in a year but risen 6.21% in 2023. Total 12.25 lakh shares of the firm changed hands amounting to a turnover of Rs 27.31 crore on BSE. Market cap of the firm rose to Rs 70,489 crore on Thursday.               

In terms of technicals, the relative strength index (RSI) of the stock stands at 69.7, 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, 20 day, 50 day, 100 day and 200 day moving averages.   

 Tata Power said the project has the hybrid renewable capacity of 379 MW solar and 587 MW wind power.  

 Tata Steel, with an annual crude steel production capacity of 35 million tonnes per annum (MnTPA), is one of the world's most geographically diversified steel producers. 

This project will fulfil a significant part of Tata Steel's green energy requirements in India, saving 23,89,160 tonnes of CO2 emissions annually. 

Tata Steel will invest 26 per cent equity in the project. The project will be commissioned by 1st June 2025 as per the arrangement. 

In a related development, shares of Tata Power turned ex-dividend on June 7. Tata Power declared a dividend of Rs 2 per share.  The Board of Directors of Tata Power recommended the dividend for the financial year 2022-23 during earnings announcement for the March 2023 quarter and fiscal.   

The dividend is subject to the shareholders' approval at the company’s 104th Annual General Meeting (AGM), scheduled to be held on June 19, 2023. It will be paid on and from June 21, 2023.  

In FY23, Tata Power recommended higher dividend than in FY22. In FY22, the Tata Group firm declared dividend at Rs 1.75 share, amounting to approximately Rs 559 crore.  

 

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