Tata Power Company rose 0.86% to Rs 64.65 at 11:27 IST on BSE after the company's wholly owned subsidiary signed an agreement for the sale of its 50% stake in OTP Geothermal Pte for $30 million.
The announcement was made during market hours today, 8 April 2016.Meanwhile, the S&P BSE Sensex was down 2.31 points or 0.01% at 24,683.11
On BSE, so far 4.02 lakh shares were traded in the counter, compared with an average volume of 5.43 lakh shares in the past one quarter. The stock hit a high of Rs 65.45 and a low of Rs 64.30 so far during the day. The stock had outperformed the market over the past one month till 7 April 2016, rising 8.28% compared with 0.16% decline in the Sensex. The scrip, however, underperformed the market in past one quarter, falling 3.17% as against Sensex's 0.67% fall.
The large-cap company has an equity capital of Rs 270.46 crore. Face value per share is Re 1.
Tata Power International Pte (TPIPL), a Singapore company and wholly owned subsidiary of Tata Power Company signed an agreement with KS Orka Renewables Pte for the sale of its 50% stake in OTP Geothermal Pte (OTP). The aggregate cash consideration for TPIPL's 50% stake is $30 million, Tata Power Company said. OTP, a 50:50 joint venture with Origin Energy, holds a 95% interest in Indonesia's PT Sorik Marapi Geothermal Power (SMGP). SMGP is currently pursuing development of 240 megawatts (MW) Sorik Marapi Geothermal Power Project in North Sumatra. The transition is expected to benefit the project development, Tata Power Company said. The divestment of the company's interest in OTP is consistent with strategy to constantly review its businesses and restructure, as required, to deliver long term value to shareholders, the company said.
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The company has significant investments in Indonesia and remains committed to development of Indonesian power and energy sector, Tata Power Company said. The company's other investments in Indonesia include investments in PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Baramulti Suksessarana Tbk, it said. The sale is subject to customary Conditions Precedent (CPs) including approvals from relevant Indonesian government authorities. The company targets to complete the sale in next three months subject to satisfaction of various conditions, Tata Power Company said.
Meanwhile, Tata Power Company announced after trading hours yesterday, 7 April 2016, that the Appellate Tribunal for Electricity (APTEL) has decided against providing compensatory tariff to the company's 100% subsidiary Coastal Gujarat Power (CGPL). CGPL operates the 4,000 MW Ultra Mega Power Project (UMPP) at Mundra, Gujarat. APTEL, while pronouncing the order, also remarked that Central Electricity Regulatory Commission (CERC) has no power to grant compensatory tariffs. However, APTEL has thrown back the case to CERC. It has asked the commission to decide the tariff as per power purchase agreements (PPAs) and under 'force majeure' or 'change in law'. CERC has also been directed to conclude the exercise as expeditiously as possible and within a period of 3 months from 7 April 2016.
In an order dated February 2014, CERC decided a compensatory tariff to be paid by the states procuring power from Tata Power Company and Adani Power's power generation units at Mundra with effect from the commissioning date of the units. The compensatory tariff was over and above the tariff agreed in the power purchase agreement.
Tata Power Company's consolidated net profit fell 87.6% to Rs 24.46 crore on 0.7% fall in total income to Rs 9313.19 crore in Q3 December 2015 over Q3 December 2014.
Tata Power Company is India's largest integrated power company with a significant international presence. The company has presence in all the segments of the power sector viz generation (thermal, hydro, solar and wind), transmission, distribution and trading.
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