Adani Power shares rallied nearly 9 percent intraday on April 12 after the power regulator approved higher tariff for the Mundra unit. But there was some profit booking towards close, which trimmed gains and the stock closed at Rs 52.95.
After this order, Gujurat Electricity Board approached CERC to seek nod to amend terms for power purchase agreement (PPA) for 2,000 MW.
CERC also approved reviewing ceiling price every 5 years as per recommendations by High Powered Committee.
“It is a good decision for company and gives relief in terms of loss they were making (around Rs 1,000-1,200 crore per quarter). Here are things will not be bad for company and this move will help company curtail losses. One can really book profits at current level,” SP Tulsian of sptulsian.com told CNBC-TV18.
Adani Power had posted a loss of Rs 1,180.8 crore for quarter ended December 2018 against loss of Rs 1,313.7 crore in same period last year.
The company has an installed thermal power capacity of 10,440 MW spread across four power plants in Gujarat, Maharashtra, Karnataka and Rajasthan.