Shares of Tata Power Co. Ltd rose over 2% today after the firm received a letter of intent (LoI) from REC Power Development and Consultancy Limited (a wholly owned subsidiary of REC Limited) to acquire Jalpura Khurja Power Transmission Limited, a project special purpose vehicle (SPV). The cost of transaction is Rs 838 crore. Tata Power shares rose 2.55% to Rs 385.75 against the previous close of Rs 376.15 on BSE.
Tata Power stock fell to a 52 week low of Rs 182.45 on March 28, 2023 and climbed to a 52 week high of Rs 412.75 on February 9, 2024.
Tata Power stock has gained 86.30% in a year and zoomed 65.80% in six months. Total 5.62 lakh shares of the firm changed hands amounting to a turnover of Rs 21.52 crore on BSE. Market cap of Tata Power rose to Rs 1.21 lakh crore.
The Project SPV (Jalpura Khurja Power Transmission Limited) will be developed on build-own-operate transfer basis, to provide transmission service for 35 years from the schedule date of commercial operation (SCOD) which is 18 months from the date of SPV acquisition, said Tata Power.
The award has been placed on the company for 35 years.
Tata Power reported a 2.28 per cent rise in its third-quarter (Q3 FY24) consolidated net profit to Rs 1,076.12 crore as against Rs 1,052.14 crore in the year-ago period.
Revenue from operations climbed 3.69 per cent in Q3 FY24 at Rs 14,651 crore compared to Rs 14,129.12 crore in the corresponding quarter last fiscal. Expenses of the Tata Group firm also climbed proportionately to Rs 14,254.11 crore in October-December 2023 quarter from Rs 13,745.89 crore in Q3 FY23.
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