Tata Power stock up 3% as arm sells stake in OTP Geothermal

Tata Power stock rose nearly 3 per cent today after its Singapore-based arm TPIPL signed a pact with KS Orka Renewables Pte for sale of its 50 per cent stake in OTP Geothermal Pte (OTP) for USD 30 million (around Rs 200 crore).
The stock gained 2.57 per cent to settle at Rs 65.75 on BSE. Intra-day, it climbed 3.12 per cent to Rs 66.10.
On NSE, the shares went up by 2.97 per cent to close at Rs 65.80.
Volume-wise, 7.87 lakh shares of the company changed hands on BSE, and over 90 lakh shares on NSE.
Rise in the stock is also due to emergence of value- buying, marketmen said.

Tata Power stock had lost 3.83 per cent in the previous session after Appellate Tribunal for Electricity set aside electricity regulator CERC's order for granting compensation for increase in fuel costs to projects won through competitive bidding.

"The aggregate cash consideration for TPIPL's 50 per cent stake is USD 30 million. OTP, a 50:50 joint venture with Origin Energy Limited, holds a 95 per cent interest in Indonesia's PT Sorik Marapi Geothermal Power (SMGP)," Tata Power said in a press release today.
OTP is a 50:50 joint venture between Origin Energy Limited and Tata Power International Pte (TPIPL).
According to the statement, SMGP is currently pursuing development of 240 MW project in North Sumatra. The transition is expected to benefit the project development.

Tata Power has significant investments in Indonesia and remains committed to developing Indonesian power and energy sector.