Share of Tata Power surged 13 per cent to hit a 52-week high of Rs 132.50 on BSE a day after the Competition Commission of India (CCI) cleared Tata Power's acquisition of 51 per cent stake each in three power utilities in Odisha.
The company will buy stakes in Western Electricity Supply Company of Odisha (WESCO), Southern Electricity Supply Company of Odisha Ltd (SOUTHCO), and Central Electricity Supply Company of Odisha Ltd (CESCO).
The deal comes after separate competitive bidding processes initiated by the Odisha Electricity Regulatory Commission. The CCI has approved the proposed combinations, according to a release issued on Tuesday.
The stock ended 6.54 per cent higher at Rs 124.65 against the previous close of Rs 117.00 on BSE. Market cap of the firm rose to Rs 39,829.91 crore.
Tata Power share is trading higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages. The stock has gained 190.5 per cent in one year and risen 65 per cent since the beginning of this year.
Recently, power stocks have been on a roll. The BSE Power index hit a high of Rs 3,083.79 in intra-day trade on Wednesday. Power Grid and NTPC gained over 2-3 per cent, each, on the BSE.
Power consumption in the country grew at 12.6 per cent in the first week of June to 25.36 billion units (BU), indicating a slow recovery in commercial and industrial electricity demand, as per the government data.
Experts hope that the commercial and industrial power consumption, as well as demand, would rise again from June onwards as many states are easing local restrictions imposed to curb the second wave of coronavirus.
Tata Power posted a net profit of Rs 392.94 crore in the quarter ended March 2021 as against Rs 402.59 crore during the previous quarter ended March 2020.
Net sales grew 52.96 per cent to Rs 10,127.39 crore in the quarter ended March 2021 as against Rs 6,620.80 crore during the previous quarter ended March 2020.
For the full year, net profit rose 10.81 per cent to Rs 1,127.38 crore in the year ended March 2021 as against Rs 1,017.38 crore during the previous year ended March 2020.
Recently, the company has also received a "Letter of Award" (LoA) to build 210 MWp of Solar PV projects for NTPC. The total order value of the projects is approximately Rs 686 crore. The commissioning date for NTPC is set for November 2022.
With this addition, the order pipeline of Tata Power Solar stands at approximately 2.8 GW with an approximate value of Rs 13,000 crore, thereby cementing its position as India's leading Solar EPC player.
The scope of work includes land, transmission, engineering, procurement, installation, and commissioning of the solar projects. The NTPC project site is located in Gujarat.
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