Torrent Power acquires a 51% equity stake in an Indian Union Territory entity

This acquisition supports the company’s focus area of licensed and franchised power distribution business with a diverse consumer base.

Torrent Power Ltd, an S&P BSE 200 company, announced today that it has inked a share purchase agreement (SPA) and shareholders agreement (SHA) with 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).

These agreements pertain to the purchase of 51% Equity Share Capital of the SPV from the Holding Entity. As per the press release, the SPV, which holds distribution license in the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD), shall be responsible for the distribution and retail supply of electricity.

Why this acquisition?

With this acquisition, Torrent Power Ltd.'s presence will expand to 12 cities spread across 3 States and 1 Union Territory. This shall significantly strengthen the company’s position as the leading Power Distribution Company in the country.

With the latest addition of DNH & DD, the company shall distribute nearly 24 billion units of electricity per annum to more than 3.85 million customers and cater to a peak demand of over 5,000 MW.

Established in 1996, Torrent Power Ltd is an integrated power utility of the diversified Torrent Group. The company's business interests span across power generation, transmission, distribution and manufacturing and supply of power cables.

Looking at the financials in the recent quarter Q3FY22, the company’s topline grew by 27.59% YoY to Rs 3767.43 crore. The PBIDT (ex OI) grew by 7.32% YoY to Rs 933.95 crore. Similarly, the company’s bottom line grew by 14.83% YoY to Rs 369.45 crore.

At 12.42 pm, the shares of Torrent Power Ltd were trading at Rs 482.95, an increase of 1.09% from the previous day’s closing price of Rs 477.75 on BSE. It has a 52-week high and low of Rs 606.05 and Rs 375 respectively on BSE.