Tata Power rose 2.63% to Rs 84 after the company announced completion of acquisition of 51% equity shares of TP Southern Odisha Distribution and TP Western Odisha Distribution.Tata Power announced that it has taken over the management and operations of WESCO and SOUTHCO upon completion of sale process. Now, WESCO and SOUTHCO will operate under the company name as TP Western Odisha Distribution (TPWODL) and TP Southern Odisha Distribution (TPSODL) respectively. As per order issued by the Odisha Electricity Regulatory Commission (OERC), Tata Power holds 51% of equity with management control and the state-owned GRIDCO will have the remaining 49% equity stake in the company.
Benchmark indices were trading with strong gains in morning trade. The Nifty hit a record high of 14,289.30. All sectoral indices on the NSE were trading in the green.
At 10:25 IST, the barometer index, the S&P BSE Sensex, surged 400.56 points or 0.83% at 48,493.13. The Nifty 50 index rallied 131.6 points or 0.93% at 14,268.70.
Index major TCS was up 1.56%. It will announce its Q3 December 2020 result today.
The broader market was trading firm. The S&P BSE Mid-Cap index was up 0.96% while the S&P BSE Small-Cap index gained 1.08%.
The market breadth was strong. On the BSE, 1859 shares rose and 771 shares fell.
A total of 138 shares were unchanged.
Tata Power has today acquired 51% equity stake each in TP Southern Odisha Distribution (TPSODL) and TP Western Odisha Distribution (TPWODL) for a consideration of Rs 127.50 crore and Rs 255 crore, respectively. GRIDCO (GRIDCO) will hold balance 49% equity stake each on TPSODL and TPWODL.
TPSODL was incorporated on 25 December 2020 as a wholly owned subsidiary of GRIDCO to carry out the business of SOUTHCO Utility.
The Hon ble Odisha Electricity Regulatory Commission (OERC), vide its Vesting Order dated 28 December 2020, has vested the license to TPSODL to carry out the function of distribution and retail supply of electricity covering the distribution circles of Ganjam City, Berhampur, Aksa, Bhanjannagar, Jeypore and Rayagada in the state of Odisha for a period of 25 years effective 1 January 2021.