Adani Power rose 0.94% to Rs 48.10 at 9:36 IST on BSE, extending Wednesday's 8.79% rise triggered by the CERC offering a compensatory package to the company for covering up the rise in cost of electricity produced at its Mundra plant.
Meanwhile, the BSE Sensex was down 180.95 points, or 0.96%, to 18,620.69.
On BSE, 3.10 lakh shares were traded in the counter as against an average daily volume of 10.61 lakh shares in the past one quarter.
The stock hit a high of Rs 48.30 and a low of Rs 47 so far during the day. The stock had hit a 52-week high of Rs 73.85 on 18 April 2012. The stock had hit a record low of Rs 36.80 on 30 August 2012.
The stock had outperformed the market over the past one month till 3 April 2013, rising 5.54% compared with the Sensex's 0.62% fall. The scrip had, however, underperformed the market in past one quarter, sliding 24.72% as against Sensex's 4.87% fall.
The large-cap power utility has an equity capital of Rs 2393.27 crore. Face value per share is Rs 10.
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Adani Power (APL) announced after market hours on Wednesday, 3 April 2013, that it had filed a petition with the Central Electricity Regulatory Commission (CERC) to review the tariff in the Power Purchase Agreement (PPA) with government utilities of Gujarat and Haryana. CERC has issued an order, by virtue of the power vested to the Commission and the statutory responsibility to balance the interest of the consumers and the project developers, while regulating the tariffs of the generating companies. Commission has therefore seen a need to direct the parties to set down a consultative process to find out an acceptable solution in the form of compensatory tariff over and above the tariff decided under the PPAs to mitigate the hardship arising out of absence of full domestic coal linkage and the need to import coal at benchmark price on account of Indonesian Regulations.
As per the order of the Commission, the stakeholders viz. the Petitioners, Respondents and the respective state government, have been directed to constitute a Committee within one week. Further, the Committee has been directed to go into the impact of the price escalation and suggest a package for compensatory tariff which can be allowed to the Petitioner over and above the tariff in the PPAs. The Committee is required to provide its recommendations keeping certain parameters in consideration, by 30 April 2013, APL said in a statement.
The Order by Commission clearly affirms the need for adequate return on the investment made which would improve the quality and supply of electricity to the consumers. Thus the Commission has achieved the twin objective of contribution to consumer interest and recovery of cost of services provided by the generating Companies. The order passed by the Commission is in line with its responsibility to intervene in the matter in the interest of the consumers, investments and the power sector as a whole, APL said.
The company added that the order itself is a landmark order recognizing and balancing the need for a solution for all the stakeholders. The independent committee of stakeholders plus a banker and a financial analyst will propose a solution in a time bound and transparent manner.
Mr. Gautam Adani, Chairman, Adani Group said, "We welcome the CERC order, which will pave the way forward to bring back investor confidence into the Power Sector."
Adani Power reported consolidated net loss of Rs 619.01 crore in Q3 December 2012, higher than net loss of Rs 356.30 crore in Q3 December 2011. Net sales rose 74.6% to Rs 1883.31 crore in Q3 December 2012 over Q3 December 2011.
Adani Power is the largest private thermal power producer in India.
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