Tata Power gains on expansion plans

Tata Power Company has moved higher by 4% at Rs 102.55 on reports that the private utility company aims to raise its generation capacity to 26 gigawatt(GW) by 2020, from the current 5.2 GW.

“Tata Group firm is looking at Indonesia and South Africa for acquiring coal mines for fuel security as the domestic supply shortage has been impacting its operations,” the report suggests.

Meanwhile, the company has completed the purchase of 51% equity shares of Tata BP Solar India Limited, which were held by BP Alternative Energy Holdings Limited. Consequently, Tata BP Solar India Limited is now a wholly owned subsidiary of the company,” Tata Power Company said in a filing to the stock exchanges.

The stock is outperforming the market by gaining around 9% so far in current week, compared to 2.7% rise in the benchmark index Nifty.

Today, the stock opened at Rs 100 and hit a high of Rs 102.75 on the National Stock Exchange. A combined 2.23 million shares have changed hands on the counter till early noon deals, against an average sub four million shares that were traded daily in past two weeks.