New Delhi, February 22 dmanewsdesk: Shares of Torrent Power Ltd on Monday surged over 5 per cent during morning trade after the firm said it has emerged as the highest bidder for 51 per cent stake in a power distribution company in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
On BSE, the scrip rose 5.66 per cent to 52-week high value of Rs 385.45.
On NSE as well, the shares of the firm increased 5.52 per cent to its 52-week high value of Rs 385.6.
The Bidding for the Distribution Business of the union territory (UT) has been undertaken as part of the government of India’s initiative to privatize distribution utilities of UTs to usher in efficiency, which will provide a model for emulation by other utilities across the country.
On Saturday, the company in a regulatory filing said that the acquisition of 51 per cent stake in the power distribution company is subject to further formalities as prescribed under the tender documents.
The discom of the UT has annual revenue of about Rs 4,500 crore at sale of around 9,000 million units of electricity every year to 1.5 lakh consumers covering geographical area of 603 square kilometres.
Samir Mehta, the chairman of Torrent Group, said that with this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2 per cent of India’s total power consumption.