NTPC shares jumped over 3% to reach Tuesday’s intraday high of ₹174.20 as several power companies had a great outing at the bourses.
What Happened: NTPC shares jumped on Tuesday as media reports suggested that the company was among the front runners looking to acquire SKS Power Generation. As per an ET report, NTPC along with Reliance Industries, Torrent Power, and Vantage Point Asset Management is leading the race to acquire the debt-ridden power company.
The report added that these companies have expressed their intent to increase their initial bids. The power plant is currently being operated by NTPC under government order.
The markets also seem to have positively reacted to the company’s renewable energy subsidiary announcing to raise fresh debts. NTPC Green Energy has invited bids for a rupee-denominated term loan of up to ₹9,000 crore as it looks to repay outstanding liability of ₹8,200 crore towards NTPC by March 31.
Shares of several other power companies jumped on Tuesday as the Indian government invoked its emergency powers and asked imported coal-based power plants to run at full capacity for three months starting March 16. The government expects power to peak around 229 GW in April.
Price Action: NTPC shares were up 3.22% at ₹173.20 as the markets closed on Tuesday.
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