Ahmedabad-based Torrent Energy Restricted on Saturday emerged as the best bidder for the sale of 51 per cent stake within the energy distribution firm within the union territory (UT) of Dadra & Nagar Haveli and Daman & Diu.
The acquisition of 51 per cent stake within the energy distribution firm by Torrent Energy is topic to additional formalities as prescribed underneath the tender paperwork. The bidding for the distribution enterprise of the UT has been undertaken as a part of the Authorities of India’s initiative to privatise distribution utilities of UTs to usher in effectivity.
Torrent Energy at the moment distributes practically 16.66 billion items to over 3.65 million clients within the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh. With the addition of Dadra & Nagar Haveli (together with Silvasa) and Daman & Diu, Torrent will distribute practically 25 billion items to over 3.8 million clients and cater a peak demand of over 5000 MW.
In line with Torrent Group chairman Samir Mehta, with this acquisition, Torrent Energy shall be entrusted with the duty to distribute over 25 billion items of energy, which is equal to round two per cent of India’s complete energy consumption. “This acquisition will considerably strengthen Torrent’s place because the main energy distribution firm within the nation with a presence in 12 cities unfold throughout 3 States and 1 Union Territory,” mentioned Mehta.
The distribution enterprise within the UT of Dadra & Nagar Haveli and Daman & Diu is unfold throughout a geographical space of 603 sq kms, ringing an annual income of roughly Rs 4500 crore with annual gross sales of 9000 million items from roughly 150,000 shoppers.
At the moment, Torrent Energy carries a debt:fairness ratio of 0.79 as on December 31, 2020 and web debt to earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) ratio of two.18 for FY 2019-20. The corporate is open to take part in new alternatives developing within the sector in renewable technology, transmission and privatisation of state-owned distribution circles.
In its licensed areas in Gujarat, Torrent Energy has one of many lowest mixture technical and business (AT&C) losses of 4.53 per cent.