Torrent Power completes acquisition of 50 MW Solar Plant in Telangana; stock marginally up

26 Mar 2024 , 03:13 PM

Torrent Power Limited has completed the transaction of acquisition of 100% securities of the SPV. The SPV operates its 50 MW Solar Power Plant in Telangana.

Northern Power Distribution Company of Telangana Limited (NPDCTL) has the Long-term Power Purchase Agreement (PPA) for the Project. PPA is for a period of 25 years at a fixed tariff of ~Rs5.35 per kWh, it has a remaining useful life of ~20 years.

Consequent to Closing adjustments, Enterprise Value for this acquisition is ~Rs416 Crore.

Currently, Torrent Power has an aggregate installed generation capacity of ~4.1 GW, largely consisting of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW). Further, it also has a capacity of 0.5 GW of renewable energy plants under development.

With this acquisition, Torrent’s total generation capacity, including its under development portfolio will be ~4.7 GW, with a renewable portfolio of more than ~1.6 GW.

At around 9.36 AM, Torrent Power was trading at Rs458.85 per piece, up by Rs2.25 or 0.49% from its previous closing of Rs456.60 on the BSE. The scrip opened at Rs455.25 and has touched a high and low of Rs464.75 and Rs455.25 respectively.