Tata Power gains after inking MoU with Vietnam govt

Tata Power rose 1.56% to Rs 78.20 at 10:36 IST on BSE after the company signed memorandum of understanding with government of Vietnam to develop Long Phu 2 power project.

The announcement was made after market hours on Friday, 22 November 2013.

Meanwhile, the BSE Sensex was up 286.80 points, or 1.42%, to 20,504.19.

On BSE, 93,000 shares were traded in the counter compared with average volume of 4.69 lakh shares in the past one quarter.

The stock hit a high of Rs 78.15 and a low of Rs 77.05 so far during the day. The stock hit a 52-week high of Rs 113.20 on 5 December 2012. The stock hit a 52-week low of Rs 68.25 on 6 August 2013.

The stock had underperformed the market over the past one month till 22 November 2013, sliding 6.10% compared with the Sensex's 3.10% fall. The scrip had also underperformed the market in past one quarter, rising 2.74% as against Sensex's 10.40% rise.

The large-cap company has an equity capital of Rs 237.31 crore. Face value per share is Re 1.

Tata Power announced the signing of a memorandum of understanding (MoU) with the Ministry of Industry and Trade, Government of Vietnam for developing the Long Phu 2 power project in Soc Trang Province of Vietnam.

The MoU has been signed to develop a thermal power plant, which will utilize imported coal, Tata Power said in a statement. In accordance with the MoU, Tata Power will carry out feasibility studies for developing this power project on build, own and transfer basis.

The Long Phu 2 Power Project is Tata Power's first coal based project outside India. Tata Power was awarded the Long Phu 2 power project by the Government of Vietnam based on the pre-feasibility studies earlier this year.

Speaking on the occasion, Mr. Anil Sardana, CEO & MD, Tata Power said: "It gives us immense pride to announce our association with The Ministry of Industry and Trade, Government of Vietnam. We look forward to working with them on developing and building the power plant, thus contributing towards trade relations between India and Vietnam. The signing of this MoU is a significant milestone for Tata Power and we endeavour to be a significant player in the international energy market."

Tata Power reported a consolidated net profit of Rs 74.97 crore in Q2 September 2013 compared with net loss of Rs 83.80 crore in Q2 September 2012. Total income rose 9.05% to Rs 8471.78 crore in Q2 September 2013 over Q2 September 2012.

Tata Power is India's largest integrated power company with a significant international presence.

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