Torrent Power share price hits new 52-week high, ends 13.70% higher; Here's why
Torrent Power shares closed 13.70% higher on Wednesday's trade. The stock hit a 52-week high on the news of signing an MoU with the Maharashtra government to construct hydro projects worth ₹27,000 crore.
PremiumTorrent Power share price touched a new 52-week high following the news of the company signed memorandum of understanding (MoU) with Maharashtra government to construct hydro projects worth ₹27,000 crore. The Torrent Power shares opened at ₹634.35 apiece on BSE and hit a intraday high of ₹725.50 and touched a intraday low of ₹630 per share, and ended 13.70% higher on Wednesday's trade.
The company in an exchange filing stated that it expected to carry out these projects over a period of five years and 13,500 jobs are likely be created by these developments.
Three locations, Karjat (3,000 MW) in Raigarh District, Maval (1,200 MW), and Junnar (1,500 MW) in Pune District, have been designated by Torrent as the places where the projects will be implemented. All of the locations are off-stream, and the projects are designed to offer daily energy storage of at least six hours.
The company claimed in an exchange filing that the amount of intermittent renewable electricity in the grid is rising quickly. Energy storage is required for load balancing and meeting peak demand as a result.
Storage Pumped Hydro is a well-recognised, tested, and economically advantageous technology providing reliable, flexible, and dispatchable electricity.
According to the exchange filing, the company's installed generation capacity totals around 4.1 GW, with the majority of that capacity coming from clean sources including gas (2.7 GW) and renewable energy (1.07 GW).
Additionally, it is developing a renewable energy capacity of 0.7 GW. Renewable energy continues to be Torrent's primary priority in power generation. In order to bridge the gap in the grid caused by intermittent renewable energy, Torrent is strategically entering the storage market to complement its expanding portfolio of renewable and distribution.
The integrated power utility of the diversified Torrent Group, with group revenues of ₹37,500 Cr (about USD 4.50 billion) and a market cap of about ₹87,000 Cr (roughly USD 10.50 billion), has a turnover of ₹25,694 Crores (almost USD 3 billion).
On the technical front, analysts said that the stock is in an uptrend and the positive news flows have led to a buying interest in the stock, which can be seen by high volumes.
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