By Aditya Raghunath
Investing.com -- Shares of Torrent Power Ltd (NS: TOPO ) have had a great 2021. The company’s stock has moved from Rs 317.4 on December 31, 2020 to Rs 471.75 on August 4.
Three days back, the company entered into a securities purchase agreement with Lightsource India and Lightsource Renewable Energy (India) for the acquisition of 100% of the share capital and all securities of LREHL Renewables India SPV 1 (SPV). The SPV operates a 50 MW solar power plant, commissioned in April 2018, situated in Maharashtra. It has a long-term Power Purchase Agreement with Solar Energy Corporation of India for full capacity for a period of 25 years. Enterprise value estimated for this acquisition is around Rs 317 crore
Torrent Power is one of the largest companies in the country's power sector with a presence across the entire power value chain of generation, transmission, and distribution.
The last coverage on this stock was by Motilal Oswal (NS: MOFS ) in a report on May 22 where it had assigned a target of Rs 480 to the stock. It said that the company has a healthy balance sheet, and is well-placed to capitalize on opportunities arising from distribution privatization.
In July, Torrent Power announced that the Supreme Court stayed a Bombay High Court order that suspended the tender process for power distribution business in Dadra & Nagar Haveli and Daman & Diu. Torrent Power was the highest bidder for a 51% stake in the power distribution business in the union territories.
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