The announcement was made after market hours on Friday, 20 July 2012.
Meanwhile, the BSE Sensex was down 158.46 points, or 0.92%, to 16,999.98.
On BSE, 1.27 lakh shares were traded in the counter as against an average daily volume of 3.48 lakh shares in the past one quarter.
The stock hit a high of Rs 100.50 and a low of Rs 99 so far during the day. The stock had hit a 52-week high of Rs 132.40 on 22 July 2011. The stock had hit a 52-week low of Rs 80.65 on 20 December 2011.
The stock had outperformed the market over the past one month until 20 July 2012, rising 7.62% compared with the Sensex's 1.55% rise. The scrip had, however, underperformed the market in past one quarter, sliding 5.19% as against 1.24% fall in the Sensex.
The large-cap private power utility has an equity capital of Rs 237.31 crore. Face value per share is Re 1.
Tata Power has signed a long term coal supply agreement with PT Antang Gunung Meratus (AGM), a 100% subsidiary of the Indonesian company PT Baramulti Sukses Sarana (BSSR).
Further, in order to secure the coal supplies, Tata Power, through its 100% subsidiary Khopoli Investments (Khopoli), has also entered into an agreement, which gives Khopoli an option, subject to necessary approvals, to take up to a 26% stake in BSSR.
AGM and BSSR own approximately 1 billion tonnes of coal resources in South and East Kalimantan in Indonesia.
Speaking on the development, Anil Sardana, Managing Director, Tata Power said, As a strategy to support our growth agenda, we are happy to have signed this coal supply agreement. It would support our upcoming power projects based on imported coal to be developed over the next 5 years.
Tata Power's existing Indonesia presence includes 30% equity stakes (the Purchase) in two major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, and a related trading company owned by PT Bumi Resources Tbk (Bumi). As part of the Purchase, Tata Power has signed an Offtake Agreement which entitles it to purchase about 10 million tonnes of coal per annum.
Additionally, a consortium comprising of Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 megawatts of generation capacity.
Global rating agency Standard & Poor's Ratings Services (S&P) recently cut its outlook on Tata Power to negative from stable while affirming its 'BB-' long term corporate credit rating on the firm and its 'BB-' issue rating on the company's senior unsecured notes. S&P said it may lower the rating on Tata Power if the company is unable to secure waiver from its lenders on the breach of covenant. Another trigger for the rating downgrade could be increase in expenditure due to the Mundra ultra mega power (UMPP) project or otherwise resulting into substantial weakness in Tata Power's financial risk profile.
S&P said it could upgrade the outlook on Tata Power to stable if Tata Power secures the necessary waiver and if the construction at the Mundra UMPP continues as planned and is within budget. S&P may also consider an upward revision in outlook in case if Tata Power faces no material deterioration in its business and sustainably maintains its financials risk profile such that its ratio of funds from operations to adjusted debt is 10% to 12%.
Tata Power reported a consolidated net loss of Rs 628.75 crore in Q4 March 2012, as against net profit of Rs 625.02 crore in Q4 March 2011. Net sales rose 43.8% to Rs 7169.85 crore in Q4 March 2012 over Q4 March 2011. The company will announce Q1 results on 8 August 2012.
Tata Power is India's largest integrated power company with a significant international presence. The company has an installed generation capacity of 5,299 megawatts (MW) in India and a presence in all the segments of the power sector viz. generation (thermal, hydro, solar and wind), transmission, distribution and trading.