Torrent Power to acquire 51% stake in Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation

16 Mar 2022 , 01:09 PM

Torrent Power has entered into a Share Purchase Agreement (SPA) and Shareholders Agreement (SHA) with Hon’ble 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.

The SPV will be responsible for the 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).

The stock is currently trading at Rs482.90 up by Rs5.15 or 1.08% from its previous closing of Rs477.75 on the BSE. The scrip opened at Rs489.85 and has touched a high and low of Rs489.85 and Rs480.40 respectively.

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, is the integrated power utility of the diversified Torrent Group with group revenues of Rs20,500 crore. (approx. USD 2.7 billion) and Market Cap of Rs71,000 crore (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.