India's leading private power player, Tata Power, gained as much as 4.4 per cent on Bombay Stock Exchange, as investor cheered the company's plans to buy out BP Energy's 51 per cent stake in their solar power joint venture, following which Tata Power will have 100 per cent of the company.
Meanwhile, the benchmark index of BSE, Sensex was down 108.09 points or 0.68 per cent at 15,765.90.
However, the deal still awaited the approval from Reserve bank of India and Competition Commission of India, said the company in its filing to the Bombay Stock Exchange on December 27, 2011.
As per the terms of agreement, Tata Power will continue to enjoy certain technologies of BP until 2013. Experts opined that BP's exit from the 20 years long partnership, was on account of shrinking profitability in the business, as cheap Chinese equipments kept destroying the margins of Indian power makers.
Dion Global Solutions Ltd