Torrent Power Limited has signed a share purchase agreement (SPA) and shareholders’ agreement (SHA) for the acquisition of 51 per cent stake in the discom Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited.
This is part of the Centre's move to privatise the power distribution company in the Union Territory.
In February 2021, Torrent Power had emerged as the highest bidder for the stake sale.
On Wednesday, the company said that it has entered into an SPA and SHA with the special purpose vehicle (SPV) and administrator of the Union Territory, which is the holding entity of the SPV — that is, Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited.
The SPV will be responsible for the distribution and retail supply of electricity and holds the distribution licence in the Union Territory.
Distribution portfolio
The Union Territory is the latest addition to Torrent Power's portfolio of power distribution markets, which includes Gujarat, Uttar Pradesh and Maharashtra.
In Gujarat it distributes electricity to the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR, while in Maharashtra it supplies Bhiwandi, Shil, Mumbra and Kalwa, and Agra in Uttar Pradesh.
"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 three States and one Union Territory," the company informed in a statement.
"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," the statement said.
Torrent Power is one of the largest companies in the country’s power sector, with presence across the power value chain of generation, transmission and distribution.
Torrent Power shares traded positive on Wednesday at ₹484.70, up 1.45 per cent, on BSE.