Tata Power brightens on buzz of stake sale plans in IEX

Tata Power Company gained 3.97% to Rs 81.10 at 14:40 IST on BSE after reports suggesting that the company is expected to dilute its stake in Indian Energy Exchange through initial public offering.

Meanwhile, the S&P BSE Sensex was down 32.72 points, or 0.11% to 29,409.91.

More than usual volumes were witnessed on the counter. On the BSE, 7.3 lakh shares were traded in the counter so far, compared with average daily volumes of 3.67 lakh shares in the past one quarter. The stock had hit a high of Rs 81.50 and a low of Rs 78 so far during the day. The stock had hit a 52-week high of Rs 91.25 on 3 April 2017. The stock had hit a 52-week low of Rs 67.10 on 9 November 2016.

The stock had underperformed the market over the past one month till 19 June 2017, falling 7.36% compared with 2.78% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 9.41% as against Sensex’s 5.61% gains. The scrip had also underperformed the market in past one year, gaining 5.91% as against Sensex’s 17.6% gains.

The large-cap company has equity capital of Rs 270.48 crore. Face value per share is Re 1.

Tata Power Company is one of shareholders of Indian Energy Exchange that has filed draft red herring prospectus with capital markets regulator to float an initial public offering (IPO), report added.

Existing shareholders including Tata Power Company, private equity arm of Aditya Birla Group, Madison India Capital and Renuka Ramnath-led Multiples Alternate Asset Management will sell 60.65 lakh shares in the company via IPO, report said.

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Besides, AF Holdings, Kiran Vyapar, Golden Oak (Mauritius) and IEX’s former chief executive Jayant Deo, will also offload shares in the public issue, according to the draft red herring prospectus (DRHP).

IEX is India’s premier power trading platform. Providing an automated platform for physical delivery of electricity, IEX enables efficient price discovery and offers participants the opportunity to trade in a variety of energy products.

On a consolidated basis, Tata Power Company reported net loss of Rs 246.90 crore in Q4 March 2017 compared with net profit of Rs 82.95 crore in Q4 March 2016. Net sales fell 1.8% to Rs 7166.79 crore in Q4 March 2017 over Q4 March 2016.

Tata Power is India’s largest integrated power company with a significant international presence. The company has a presence in all the segments of the power sector viz generation (thermal, hydro, solar and wind), transmission, distribution and trading.

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