Torrent Power shares surged over 5 per cent in an otherwise weak market to hit record high on Monday after homegrown company said it has emerged as the highest bidder for 51 per cent privatisation of power distribution companies in Dadra & Nagar Haveli, and Daman & Diu. Boosted by the development, shares of Torrent Power gained as much as 5.66 per cent in intraday trade to touch 52-week high of Rs 385.45 apiece on the Bombay Stock Exchange.
On Monday shares of Torrent Power opened higher at Rs 373 against previous closing price of Rs 364.80. During the day's trade, the stock hit record high of Rs 385.45 on the back of surge in buying, before settling at Rs 379.05, up 3.91 per cent.
On the volume front, there was spurt in buying as 2.89 lakh shares changed hands over the counter as compared to two-week average volume of 0.88 lakh shares. The market cap of the company surged to Rs 18,258.63 crore. In contrast, the BSE benchmark Sensex ended at 49,744, down 1145 points or 2.25 per cent.
As per the company, the acquisition of 51 per cent stake in the power distribution company is subject to further approval. With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater a peak demand of over 5000 MW.
Torrent Power currently distributes nearly 16.66 billion units to over 3.65 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
Commenting on the development, Samir Mehta, Chairman of Torrent Group stated that "With this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2 per cent of India's total power consumption. This acquisition will significantly strengthen Torrent's position as the leading Power Distribution company in the country with a presence in 12 cities spread across 3 States and 1 Union Territory."
Also read: YES Bank share falls 3% amid market crash