Shares of Tata Power surged over 8 per cent intraday to hit 52-week high of Rs 114 on Bombay Stock Exchange on Thursday, in an otherwise weak broader market. The stock has rallied 322 per cent in last 10 months against 52-week low of Rs 27, hit on April 12 amid improved outlook and higher power demand.
The S&P BSE Power index was the top gainer on sectoral space, surging 1.43 per cent on the back of surge in buying in Adani Power, Tata Power, BHEL, NHPC and Torrent Power stocks. Adani Power, Torrent Power, Adani Transmission and NHPC hit their respective 52-week highs on the BSE on higher power demand.
On Thursday, Tata Power share opened higher at Rs 104.60 against previous close of Rs 105.25, in an otherwise weak broader market. During the day's trade, the stock gained as much as 8.31 per cent to hit fresh high of Rs 114, before closing at Rs 109.35, down 3.9 per cent. Market cap of the stock surged to Rs 35,036.90 crore. In contrast, the BSE Sensex was trading at 50,878, down 565 points or 1.10 per cent.
On the volume front, there was surge in buying as 85.80 lakh shares changed hands compared to two-week average volume of 53.82 lakh shares.
On Wednesday, Tata Power in an exchange filing said that its wholly owned subsidiary, TP Saurya Limited, has signed a power purchase agreement with Tata Steel (TSL) to develop a 15 MW solar project at Jamshedpur, Jharkhand. The energy will be supplied to TSL under a power purchase agreement (PPA) valid for a period of 25 years from scheduled commercial operation date. The project is required to be commissioned within 6 months from the date of execution of the PPA.
The plant is expected to generate an average of 32 MUs of energy per year and will annually offset approximately average 25.8 Million Kg of CO2.
Tata Power said its renewable capacity will increase to 4,047 MW, out of which 2,687 MW is operational and 1,360 MW is under implementation including 15 MW won under this PPA.