AHMEDABAD: Sudhir Mehta and the promoters of Ahmedabad-based Torrent Power Limited (TPL) added a whopping Rs 524 crore to his kitty in a single day as the stock soared by over 25 per cent on Thursday.
The stock closed at Rs 104.80 on BSE, up from its previous close of Rs 83.80. The stock was a top gainer among A-group stocks of BSE. The sudden spurt surprised market watchers, as stock prices of other power companies remained range-bound on Thursday.
With rising stock prices, promoters’ share in market capitalisation went up from Rs 2,089 crore to Rs 2,613 crore. According to market sources, the company may benefit once the Central government takes decision to allocate the KG basin gas of Reliance to power generating units. At present, the government has allowed Reliance to sell gas to certain fertilisers units.
Torrent Power has ambitious plans to build a string of power projects that will raise its generating capacity to over 9,600 MW from the existing 1600 MW. These include plants at Surat, Dahej, Pipavav, Kutch and Chhattisgarh.
After bagging contracts for distribution of power in Kanpur and Agra in Uttar Pradesh, Torrent is set to emerge as the largest private sector power distribution company in the country with total distribution capacity of over 20.5 billion units from October 2009. Reliance Infrastructure distributes 19 billion units and Tata Power 12 billion units.