Torrent Power shares rise 9%, hit record high in early deals; here’s why

Shares of Torrent Power Ltd hit their record high in early trade today after the power utilities firm said it has emerged as a successful bidder and received letter of award (LoA) from Maharashtra State Electricity Distribution (MSEDCL) for setting up of 306 MW grid-connected solar power project at Nasik in Maharashtra. Torrent Power shares zoomed 9.28% to a high of Rs 1249.80 on Monday against the previous close of Rs 1143.65 on BSE. 

Earlier, the stock opened higher at Rs 1170 on BSE.

Total 0.70 lakh shares of the firm changed hands amounting to a turnover of Rs 8.55 crore on BSE. The market cap of the firm rose to Rs 59,591 crore on BSE.

Torrent Power shares are trading higher than the 5 day 10 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 136.77% in a year and risen 34.65% in 2024.

The stock fell to a 52-week low of Rs 485 on March 27, 2023.

MSEB Solar Agro Power (MSAPL) has initiated the project under MSKVY 2.0 scheme for implementation of feeder level solarization under component C of PM-KUSUM scheme connected to the distribution network.

MSAPL has formed SPV named, MSKVY Ninth Solar SPV (project SPV) to enable development of the project. MSAPL has identified revenue land parcels & obtained some permissions in the name of project SPV.

Torrent Power will buy 100% of the equity shares of the project SPV and will get the central finance assistance (CFA) from Central Government for eligible capacity as per the terms of the PM-KUSUM scheme.

The project shall be commissioned within 18 months from the LoA at an estimated cost of Rs 1,540 crore. The tariff for the project is Rs 3.10/kWh for the period of 25 years.

With this award, Torrent Power’s renewable capacity under construction has increased to 1.7 GW. Upon completion of these 1.7 GW projects, Torrents renewable capacity will increase to 3 GW in the next 18-24 months.

Torrent Power, a subsidiary of the Torrent Group, is a prominent player in India's power sector with a presence across the entire power value chain, including generation, transmission, and distribution.