Tata Power Acquires 40% Stake in Khorlochhu Hydro Power for Rs 830 Crore

Tata Power has just made it to the news again in the renewable energy sector by acquiring a 40% stake in Bhutan-based Khorlochhu Hydro Power Limited (KHPL) for Rs.830 crore. This deal, which will unfold over multiple tranches, aligns perfectly with Tata Power’s push toward green energy while expanding its influence in the South Asian energy market.

Powering Up in Bhutan

So, what’s the deal? Tata Power and Bhutan’s Druk Green Power will collaborate on the massive 600 MW Khorlochhu Hydropower Project, set to cost around Rs.6,900 crore. For Tata Power, this partnership brings a boost to its renewable portfolio and supports its commitment to sustainable energy. With a big chunk of its Rs.20,000 crore capex set aside for clean energy initiatives, Tata Power’s plans are taking tangible shape—this hydropower project is only part of the bigger vision.

Market Overview

The market took notice, and Tata Power’s shares are currently down around 1%, trading at Rs.421.40. There’s a bit of momentum here—over 9 lakh shares traded, adding up to an Rs.38.40 crore turnover yesterday. Investors are watching closely; the stock has already climbed around 28% this year and 77% in the past year, hitting a high of Rs.494.85 in September 2024, though it’s also seen its lows (Rs.234.95 just last October). With a one-year beta of 1.6, this stock is no stranger to volatility, yet it continues to be one to watch.

On the technical side, Tata Power’s stock has an RSI of 36.5—comfortably in neutral territory, and it’s currently trading below its moving averages, from the short 5-day to the longer 200-day. 

Conclusion: In the end, this deal is more than just an acquisition; it’s a collaboration for a greener future for both Tata Power and Bhutan. As Tata Power charges ahead with its clean energy plans, it’s not only upgrading its portfolio but also setting an example in regional energy collaboration. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.