Shares of electricity generation and distribution company - Torrent Power - rose as much as 5.66 per cent to hit record high of Rs 385.45 after the company on Saturday informed exchanges that it has emerged as the highest bidder for privatisation of a power distribution company in the Union Territory of Dadra & Nagar Haveli and Daman & Diu. (Track Torrent Power stock price here)
"Torrent Power Limited emerged as the highest Bidder for the sale of 51 per cent stake in the Power Distribution Company in the UT of Dadra & Nagar Haveli and Daman & Diu. The acquisition of 51 per cent stake in the power distribution company by Torrent is subject to further formalities as prescribed under the Tender documents," Torrent Power said in a press release.
Torrent Power currently distributes nearly 16.66 billion units to over 3.65 million customers in Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater a peak demand of over 5000 MW, the Ahmedabad-based power distribution company added.
"With this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2% of India's total power consumption. 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," Samir Mehta, chairman of Torrent Group said in a statement.
As of 12:18 pm, Torrent Power shares traded 3 per cent higher at Rs 376, outperforming the Sensex which was down 1.5 per cent.