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Torrent Power soars 8% on winning 2,000 MW Energy Storage Capacity project
Source: Business Standard
Torrent power share gains after winning 2,000 MW Energy Storage Capacity project
Torrent Power shares gained 8 per cent in trade on Wednesday, October 9, and registered an intraday high of Rs 1,976.6 per share. The stock advanced after Torrent Power secured a letter of award from Maharashtra State Electricity Distribution (MSEDCL). It also inked a share subscription and shareholders’ agreement (SSSA) with Lakshmi Mills and Torrent Urja 17 Private Limited (TU17).
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Torrent Power received a letter of award from MSEDCL for a long term supply of 2,000 Megawatt (MW) Energy Storage Capacity from InSTS Connected Pumped Hydro Storage Plant.
As per the filing, the 2,000 MW capacity is inclusive of 1,500 MW capacity for which a Letter of Intent was already issued by MSEDCL on September 17, 2024. The company has now received an allotment of an additional 500 MW capacity under the tender taking the total capacity allocated to 2,000 MW.
MSEDCL will procure energy storage capacity from Torrent Power’s InSTS Connected Pumped Hydro Storage for 40 years.
As per reports, Morgan Stanley has maintained an ‘overweight’ rating on Torrent Power for a target of Rs 2,268 per share. The global brokerage believes that an Equity IRR (Internal Rate of Return) of 15 per cent assuming capex of Rs 5 crore/MW and 80/20 Debt: Equity.
Further, the company expects annual revenue of Rs 1,680 crore.
In another filing, Torrent Power informed that it has signed SSSA with Lakshmi Mills (TLMCL) and Torrent Urja 17 (TU17) for the supply of power from renewable energy sources of 8.5 MWp Solar Power through open access from the Project of TU17 to the production units of TLMCL.
Significant terms of SSSA include: TLMCL shall at all times during the subsistence of the Power Supply and Offtake Agreement hold not less than 26 per cent of the shares of TU17.
Torrent Power holds 10,000 shares of Rs 10 each aggregating to Rs 1,00,000 share capital of TU17, a subsidiary of the company.
In the past one year, Torrent Power shares have gained 151 per cent against Sensex’s rise of 25 per cent.
First Published: Oct 09 2024 | 10:20 AM IST
