Torrent Power hits high on emerging highest bidder for Dadra & Nagar Haveli and Daman & Diu discom

Our Bureau Updated - February 22, 2021 at 02:32 PM.

Private security personnel stand guard outside the main entrance of the Torrent Power head office in the northern Indian city of Agra September 28, 2012. It is rough being an employee of Torrent Power Ltd in the Indian city of Agra. Furious residents regularly take staff of the power distributor hostage or beat them up, stone-throwing mobs besiege the firm's high-walled compound, and one official recently had to be hospitalised after he was hit on the head with a brick. Torrent's experience highlights the perils for companies hoping to benefit from the privatisation drive, as well as the challenges facing India as it grapples with chronic energy shortages that stand in the way of its ambitions to become a global economic power. Picture taken September 28, 2012. To match Insight INDIA-POWER/ REUTERS/Brijesh Singh (INDIA - Tags: BUSINESS SOCIETY ENERGY)

The shares of Torrent Power recorded fresh highs on Monday after the company emerged the highest bidder for 51 per cent privatisation of the power distribution company (discom) in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

At 11:12 am, Torrent Power was trading at ₹378.75 on BSE, up ₹13.95 or 3.82 per cent. It hit a 52-week high of ₹385.45. It opened at ₹385.60 as against the previous close of ₹364.80.

On NSE, it was trading at ₹378.20, up ₹12.80 or 3.50 per cent. It hit a 52-week high of ₹385.60.

The company has announced that it has emerged the highest bidder for the sale of 51 per cent stake in the UT’s discom. The acquisition is subject to further formalities as prescribed under the tender documents.

The bidding has been undertaken as part of the Centre’s initiative to privatise distribution utilities of UTs to usher in efficiency, which will provide a model for emulation by other utilities across the country.

With the addition of Dadra and Nagar Haveli (including Silvasa) and Daman and Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater a peak demand of over 5,000 MW, the company said.

Samir Mehta, Chairman, Torrent Group, said: “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. 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.”

Published on February 22, 2021 08:34