Tata Power gains on acquiring 51 per cent stake in TP Central Odisha
Indian electric utility company, Tata Power Limited, announced that it has taken over the management of Central Electricity Supply Utility of Odisha (CESU).
The company informed via an exchange filing made on Monday after the market hours that it has received a letter of intent (LOI) from Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in five cities of the state namely, Bhubaneshwar, Cuttack, Puri, Paradip and Dhenkanal.
In the statement issued, the company mentions that they have "acquired 51 per cent equity stake in TP Central Odisha Distribution Limited (TPCODL) at a consideration of Rs 178.5 crore. GRIDCO Limited will hold balance 49 per cent equity stake on TPCODL."
Speaking on the acquisition, the company added, "TP Central Odisha Distribution Limited (TPCODL) was incorporated on April 6, 2020 as a wholly-owned subsidiary of GRIDCO Limited (GRIDCO) to carry out the business of Central Electricity Supply Utility of Odisha (CESU)."
Tata Power has received this license after 25 years and according to the agreement, the company will retail all the employees of CESU and will govern them by their existing policy structure.
The stock of Tata Power Company Limited was trading at Rs 41.05, up by 3.79 per cent against its previous close of Rs 39.55 on BSE, at 11.49 am on Tuesday.