PFC Shares Rise After Selling Solarpur Transmisson Unit To Torrent Power
The subsidiary was set up for developing transmission systems for evacuation power from renewable energy projects in special economic zones of Solarpur, it said.
Shares of Power Finance Corp. rose to their highest in four days on Thursday after it sold its wholly owned subsidiary, Solarpur Transmission Ltd., to Torrent Power for Rs 6.54 crore.
The power finance company concluded the sale of the special purpose vehicle on Wednesday, according to an exchange filing. It was set up for developing transmission systems for evacuation power from renewable energy projects in special economic zones of Solarpur, it said.
Torrent Power Ltd. will acquire a 100% stake in Solarpur Transmission Ltd. as a part of the purchase agreement, said the company in another exchange filing. This would serve the company's focus in the power transmission area.
The transmission special purpose vehicle is yet to commence its business.
Shares of the company rose as much as 6.22% to Rs 384.00 apiece, the highest level since March 18. It was trading 6.09% higher at Rs 383.50 apiece as of 9:42 a.m. This compares to a 0.76% advance in the NSE Nifty 50.
The stock has risen 210.01% in past 12 months. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 41.69.
All the seven analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 40.8%.
Earlier this month, the company approved a third interim dividend of Rs 3 per share for financial year 2023-24. With this, the total interim dividend for the fiscal stands at Rs 11 per share of Rs 10 each.