Torrent Power rose 2.09% to Rs 487.75 after the company said it will purchase 51% stake in Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation.
Torrent Power has entered into a Share Purchase Agreement (SPA) and Shareholders Agreement (SHA) with administrator of the Union Territory of Dadra and Nagar Haveli and Daman and Diu (holding entity) and Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation (the SPV) for purchase of 51% equity share capital of the SPV from the holding entity.The SPV will be responsible for distribution and retail supply of electricity. It holds distribution license in the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD).
This acquisition will significantly strengthen Torrent's position as the leading power distribution company in the country with a presence in 12 cities spread across 3 States and 1 Union Territory.
With the addition of DNH & DD, Torrent will distribute nearly 24 billion units of electricity per annum to over 3.85 million customers and cater a peak demand of over 5,000 MW.
The SPV was incorporated on 8 March 2022 with an objective to distribute and supply electricity in the Union Territory of Dadra and Nagar Haveli and Darnan and Diu. It is yet to commence business operation. Hence, history of turnover of last three years is not applicable.
Torrent Power is an integrated power utility. It is one of the largest companies in the country's power sector with presence across the entire power value chain of generation, transmission and distribution.
On a consolidated basis, Torrent Power's net profit jumped 14.8% to Rs 369.45 crore on 27.6% surge in net sales to Rs 3,767.43 crore in Q3 FY22 over Q3 FY21.
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