Torrent Power emerges as highest bidder for privatisation of power distribution company; stock hits 52-week high
Torrent Power Limited, an integrated power utility of Torrent Group, announced during the weekend that the company has emerged as the highest bidder for the sale of 51 per cent stake in the union territories of Dadra & Nagar Haveli as well as Daman & Diu for the privatisation of power distribution company.
With this acquisition, the company will be able to distribute over 25 billion units of power as against the earlier capacity of 16.66 billion to nearly 3.8 million customers compared to the earlier customer base of 3.65 million.
The acquisition will aid the company to distribute 2 per cent power of India’s total power consumption, which will also significantly strengthen the company’s position as the leading distributor with its presence in 12 cities across three states and one union territory.
Torrent Power is considered to be the leading power distribution company in the country. On the financial front, it has a strong balance sheet with a debt-to-equity ratio of 0.79 as of December 31, 2020, which is one of the best ratios amongst private players in the power sector thereby, supporting it to participate in the new opportunities coming up in the sector in renewable generation, transmission & privatisation of state‐owned distribution circles.
At around 12.56 pm on Monday, its share was trading 3.62 per cent higher at Rs 378. It jumped nearly 5.66 per cent during the early trading session; thus, creating a new 52-week high of Rs 385.45. Meanwhile, it recorded an intraday low of Rs 370 on BSE.