Tata Power is trading higher by 4% at Rs 94 after the company signed a share purchase agreement with BP Alternative Energy Holdings to purchase their 51% stake in the solar joint venture— Tata BP Solar.
“Tata Power will own the entire company after the purchase," the Tata Group company said in a filing to the stock exchanges. However, the company did not disclose the financial details of the transaction.
The companies would require approvals from the Reserve Bank of India and the Competition Commission of India to complete the transaction, Tata said in a press release.
The joint venture was formed in 1989 to manufacture photovoltaic (PV) cells and modules. Tata BP Solar has a solar module manufacturing capacity of 125-megawatt.
The stock of Tata Power opened at Rs 91.55 and hit a high of Rs 94.20 on the Bombay Stock Exchange (BSE). A combined 160,000 shares have changed hands on the counter so far on the BSE and NSE.