Torrent power stock jumps over 6.5% on bagging ₹1,825 crore renewable energy project
Torrent Power, a leading integrated power utility firm, saw its share price climb sharply in Monday's trading session after the company bagged a wind-solar hybrid project. According to an exchange filing made on Thursday (March 28) after market hours, the company said that it received a letter of award from its 'Distribution Unit' for setting up a 150MW wind-solar hybrid project with an investment of ₹1,825 crore.
The project is slated to be operational within 24 months from the signing of the Power Purchase Agreement (PPA), with a contractual supply of power spanning 25 years from the project's commissioning. Notably, the annual capacity utilization factor (CUF) is stipulated to be no less than 50% throughout the PPA term, with the wind and solar capacities maintained at a 2:1 ratio.
In order to meet the 50% CUF requirement, Torrent Power intends to install 245 MW of wind and solar capacity projects, surpassing the contracted capacity of 150 MW, as outlined in the company's regulatory filing. Also Read: Stocks to buy: HUL, Grasim, LIC Housing among 9 stocks that can rise 5-17% in short term, say analysts; do you own any? The company's shares responded positively to the order win, with the stock opening 3% higher at ₹1,399 apiece in today's trade as against the previous close of ₹1,357.95.
The stock strengthened further to reach an intraday high of ₹1,448.45, up by 6.66%. This marks the second consecutive order win for its 'Distribution Unit' in under a month, following the previous acquisition on March 16, where the company secured a Letter of Award for the establishment of a 300 MW (RE Power) grid-connected wind-solar hybrid project valued at ₹3650 crore.
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