Shares of this integrated power utility company jumped around 1 percent in Thursday’s trading session after the acquisition of Solapur Transmission Limited. The shares have delivered a multibagger return of 135 percent in one year to its shareholders.
With a market capitalization of Rs. 58,712 crores, the shares of Torrent Power Ltd started Thursday’s trading session on a higher note at Rs. 1,235 compared to its previous close of Rs. 1,220. During the trading session, the shares hit a high of RS. 1,256, gaining around 1 percent and are currently trading at Rs. 1,221 apiece.
According to the exchange filing, the company entered into a Share Purchase Agreement (SPA) for the acquisition of a 100 percent equity stake in Solapur Transmission, the SPV (special purpose vehicle), from PFC Consulting.
Furthermore, this acquisition was made to support the company’s focus area of Transmission business and Solapur Transmission has to establish a transmission system for the evacuation of power from RE projects in Solapur (1500 MW) SEZ in Maharashtra.
Earlier, the company received a Letter of Award from Torrent Power Limited-Distribution Unit for setting up 300 MW (RE Power) GridConnected Wind Solar Hybrid Projects worth Rs. 3,650 crores, with a contract period spanning 25 years.
Coming onto the company’s financial statement, the revenue decreased by 9 percent from Rs. 6,961 crores during the September quarter to Rs. 6,366 crores in the December quarter. On the other hand, the net profits declined by 31 percent from Rs. 543 crores to Rs. 374 crores during the same timeframe.
The company has an aggregate installed generation capacity of 4,287 MW comprising 2,730 MW of gas-based capacity, 1,195 MW of renewable capacity and 362 MW of coal-based capacity. Further, Renewable projects of 1,708 MW are under development. Total generation capacity, including projects under advanced stages of development, is 5,995 MW.
As part of its growth strategy, the company is also working on other Green Energy pathways of Pumped Storage Hydro and Green Hydrogen.
Headquartered in Ahmedabad, Torrent Power was incorporated in 2004. The company is a leading integrated power utility company in India with a presence across the generation, transmission and distribution of power. Its operations are spread across the states of Gujarat, Maharashtra, Uttar Pradesh and Karnataka and they are also a part of Torrent Group.
Written By Vaibhav Patil
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