Tata Power share rose over 9% intraday in Friday's session and touched a 52-week high of Rs 84.60 after the company said it acquired 51% stake each in TP Southern Odisha Distribution Limited (TPSODL) and TP Western Odisha Distribution Limited (TPWODL).
Following the recent updates, Tata Power share opened with a gain of 3.24% at Rs 84.50 and later climbed 3.36% to the intraday high of Rs 84.6 on BSE against the earlier close of Rs 81.85. The stock also touched an intraday low of Rs 82.65 during today's session.
The stock price of Tata Power has jumped 7% in one week and 15% in one month. Tata Power share trades higher than 5, 20, 50, 100 and 200-day moving averages. The stock has risen 45% in one year.
In a regulatory filing update, Tata Power announced acquired 51% equity stake each in the companies for a consideration of Rs 127.50 crore and Rs 255crore, respectively on December 4. Tata Power holds 51 percent of equity with management control and the State-owned GRIDCO will have the remaining 49 percent equity stake in the company.
"The merger aims to achieve the long-term objectives by facilitating efficient use of cash and making available corporate support to the businesses of the said wholly-owned subsidiaries as needed," the company said in a statement.
With this takeover, the company's distribution circles will expand to the western (TPWODL) and southern part (TPSODL) of Odisha, with a geographical spread of more than 47,000 sq km each.
It will manage a network of more than 100,000 CKT KMs each for a licence period of 25 years.