LIC-Backed Power Company Secures Rs 289.729 Crore LOI from REC Power Development and Consultancy – Complete Details Inside!

The company’s shares have delivered an impressive return of over 75 per cent in the past 1 year.

This Tata Group Large-Cap power company primarily engaged in the generation, transmission, and distribution of electricity, has announced that it has received a Letter of Intent (LOI) from a subsidiary of REC Ltd.

LOI Details

As per the press release, Tata Power has received a Letter of Intent (LOI) from REC Power Development and Consultancy Ltd, a wholly-owned subsidiary of REC Ltd, to acquire ERES-XXXIX Power Transmission Limited (ERES-XXXIX), a project-specific special purpose vehicle (SPV).

The SPV will be developed on a Build-Own-Operate-Transfer (BOOT) basis, providing transmission services for 35 years from its Scheduled Commercial Operation Date (SCOD) on December 31, 2027. The project scope includes the construction of a 2 x 1500 MVA, 765/400 kV GIS substation at Gopalpur, with associated bays at Angul and Gopalpur (OPTCL), approximately 190 km of 765 kV double circuit transmission line from the existing PGCIL substation at Angul to the proposed GIS substation at Gopalpur, and about 12 km of 400 kV line connecting the upcoming OPTCL substation at Gopalpur to the proposed GIS substation.

The contract is set for a 35-year duration, with annual transmission charges of Rs 289.729 crore.

Share Performance

Today, Tata Power's shares are trading in the red, down from the previous day's closing price, currently hovering around Rs 454 per share on the BSE. The company's market capitalization is approximately Rs 1.45 lakh crore. The shares of Tata Power have delivered a return of over 75 per cent in the past year.

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Financial Performance

As per the Quarterly Results, in Q1 FY25, Tata Power recorded a revenue of Rs 17294 crore compared to Rs 15213 crore same quarter last year. The operating profit stood at Rs 3062 crore. The net profit stood at Rs 1189 crore compared to a profit of Rs 1141 crore last year same quarter. Looking at the annual performance, the company generated a revenue of Rs 61449 crore in FY24. The operating profit for FY24 was Rs 10735 crore with a net profit of Rs 4280 crore compared to a net profit of Rs 3810 crore in FY23.

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Disclaimer: The article is for informational purposes only and not investment advice.