The Exchange has sought clarification from Tata Power Company Limited with respect to recent news item captioned Tata Power shares jump 5% after Gujarat govt approves supply agreement for Mundra plant. The response from the Company is attached.
TATAPOWER · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.4 pts less than Nifty 100 and 0.4 pts more than its Power peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Tata Power confirmed to the exchanges that the Gujarat state cabinet has approved a Supplementary Power Purchase Agreement (PPA) for its Mundra Power Plant, and a formal government order has been issued. The actual agreement will be signed between Tata Power and Gujarat Urja Vikas Nigam Limited (GUVNL) after obtaining the required regulatory clearances. This clarification was sought by NSE after Tata Power shares jumped roughly 5% on news of the development. The Mundra plant is one of Tata Power's largest and most strategically important power assets, and a long-term supply tie-up with the state discom is expected to stabilise its revenues.
Positive for shareholders — a long-term PPA removes a major overhang on the Mundra plant's earnings and cash flows, supporting valuation. The 5% share price move on the day already reflects market approval of this development.