Shares of Tata Power Company Ltd are in news today as the US International Development Finance Corporation has approved a financial aid of up to $425 million (Rs 3,521 crore)  to Tata Power Renewable Energy for setting up a 4.3 GW solar cell in Tamil Nadu by its subsidiary.  

Tata Power stock ended 1.08% higher at Rs 271.80 in the previous session on BSE.  

The stock hit an intraday low of Rs 269.15 and an intraday high of Rs 274 on Monday. The stock touched a fresh 52-week high of Rs 276.50 on September 8. The Tata Group stock opened higher at Rs 273.20 on BSE on Monday. Total 21.40 lakh shares of the firm changed hands amounting to a turnover of Rs 58.09 crore on BSE. Market cap of the firm rose to Rs 86,849 crore.        

In terms of technicals, the relative strength index (RSI) of the stock stands at 77.6, signaling the stock is overbought on technical charts. Tata Power has a one-year beta of 1.1, indicating high volatility during the period. Tata Power shares are trading higher than the 5 day, 20 day, 50 day, 100 day, 200 day moving averages.    

The plant’s first module production is expected by year-end and the first cell production is expected in the first quarter of the financial year 2024-25 (FY25), Tata Power Renewable Energy Ltd (TPREL) said.  

 “The US International Development Finance Corporation board of directors approved $425 million of financing in TP Solar Ltd, a subsidiary of TPREL, for its upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli,” the statement said. 

“We appreciate the DFC’s assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power’s ability to set up a state-of-the-art manufacturing supply line in the country. 

The Tirunelveli manufacturing plant will integrate advanced technologies enabling the production of high wattage solar modules and cells with industry-leading efficiencies, TPREL said. Additionally, the facility will implement industry 4.0 standards for smart manufacturing. The plant is expected to create over 2,000 employment opportunities directly or indirectly, with the majority of employees likely to women from local areas, it added.  

Tata Power logged a 22% rise in consolidated net profit to Rs 972.5 crore in the June quarter against  Rs 784.6 crore in the corresponding quarter of the previous fiscal.    

Revenue climbed 5% to Rs 15,213.3 crore against Rs 14,495.5 crore in Q1 of the previous fiscal. EBITDA climbed 75% to Rs 2,943.6 crore against  Rs 1,683.4 crore in June quarter of the previous fiscal.   

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