Multibagger power stock gains in early deals, here's why 

Shares of Torrent Power rose 2% in early deals today after the firm said it has signed a long-term Sales and Purchase Agreement (SPA) with BP Singapore Pte. Limited.Torrent Power shares touched an intraday high of Rs 1425, climbing 2% on BSE. Total 0.12 lakh shares of the multibagger firm changed hands amounting to turnover of Rs 1.72 crore on BSE. Market cap of the firm rose to Rs 71,337 crore.

The multibagger stock has gained 151% in two years and risen 334% in five years. 

Th agreement is for the purpose of  supply of up to 0.41 MMTPA of liquefied natural gas (LNG) for the period from 2027 to 2036. This agreement is a key step in TPL’s strategy to ensure access to competitively priced LNG, which is vital for the company’s operations in India. The news was released after market hours on Monday.

The LNG acquired through this deal will be utilized by TPL to power its 2,730 MW Combined Cycle Gas-Based Power Plants (GBPPs) across the country. This initiative aims to address the increasing demand for electricity while facilitating the integration of renewable energy sources during peak times. Furthermore, it supports the government’s goal of raising natural gas's contribution to the energy mix to 15% by 2030.

This agreement strategically positions Torrent Power within the energy landscape, as the company continues to enhance its LNG procurement and distribution capabilities. It underscores Torrent's forward-thinking strategy to strengthen its resources in response to the current challenges in the global energy market.