Tata Power Shares are in the Spotlight Today

By Consultants Review Team Monday, 04 December 2023

Tata Power Co Ltd shares are under pressure today after the Tata Group firm announced that it has won a bid to acquire the Bikaner-III Neemrana-II Transmission renewable energy project for about Rs 1,544 crore. On Friday, the stock closed 2.91% higher at Rs 275.75. 

Tata Power shares rose 3.93% in the morning session to a 52-week high of Rs 278.50. In the last six months, the Tata Group stock has increased by 28.11%. Tata Power's stock has increased 22.45% in a year and 30.22% this year. With a beta of 0.3, the stock has witnessed relatively little volatility in a year.

In terms of technicals, the stock's relative strength index (RSI) is 67.6, indicating that it is neither overbought nor oversold on technical charts. Tata Power is trading above the 5 day, 20 day, 30 day, 50 day, 100 day, and 200 day moving averages. On the BSE, 38.45 lakh shares of the company changed hands, resulting in a turnover of Rs 105.85 crore. The company's market capitalization increased to Rs 88,111 crore.

PFC Consulting Limited, a subsidiary of Power Finance Corporation, established the energy project as a special purpose vehicle (SPV). A special purpose vehicle (SPV), sometimes known as a special purpose entity (SPE), is a subsidiary established by a parent business to mitigate financial risks.

The transmission project, which will be built on a Build-Own-Operate-Transfer (BOOT) basis, is expected to ease the evacuation of 7.7 gigatonnes (GW) of renewable energy from Rajasthan's Bikaner Complex. "The project entails the establishment of a 340 kilometers transmission corridor from Bikaner-III pooling station to Neemrana II substation," the business stated in an exchange filing.


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