Torrent Power to acquire 51% stake in Dadra and Nagar Haveli, Daman and Diu Power Distribution Corp; stock gains

Torrent Power is all set to acquire 51% stake in Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited. This agreement will ensure Torrent's presence in 12 cities spread across 3 States and 1 Union Territory. 

"Torrent Power Limited has entered into a Share Purchase Agreement (SPA) and Shareholders Agreement (SHA) with administrator of the Union Territory of Dadra and Nagar Haveli and Daman and Diu (Holding Entity) and Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited (the SPV) for purchase of 51% Equity Share Capital of the SPV from the Holding Entity," said Torrent Power in a regulatory filing on Wednesday. 

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The SPV will be responsible for distribution and retail supply of electricity and holds distribution license in the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD), as per the company.  

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. With the addition of DNH & DD, Torrent will distribute nearly 24 billion units of electricity per annum to over 3.85 million customers and cater a peak demand of over 5,000 MW.  

Torrent Power, the integrated power utility of the diversified Torrent Group with group revenues of ® 20,500 Cr. (approx. USD 2.7 billion) and Market Cap of % 71,000 Cr. (approx. USD 9.3 billion), is one of the largest companies in the Country’s power sector with presence across the entire power value chain of generation, transmission and distribution.  

At2.50 pm, shares of Torrent Power were trading with Rs 7.25 gain to Rs 485per share on the BSE. Shares of this power company has given a marginal return of 14% as on March 16 in the past one year.  

Torrent Power shares traded on 52-week high value of Rs 606.05 a share on the BSE on 15th December 2021 and touched a year low of Rs 375 on April 22, last year.