Adani Power, Tata Power shares tank up to 16% after SC disallows compensatory tariffs

NEW DELHI: Shares of Tata Power and Adani Power came under heavy selling pressure on Tuesday after Supreme Court set aside Appellate Tribunal for Electricity ( APTEL) order of compensatory tariff to these companies.

Adani Power tanked 16.12 per cent to settle at Rs 37.20. Shares of the company opened at Rs 44.50 and touched an intraday low of Rs 36.55 during the day.

According to JP Morgan, no tariff relief for Mundra implies Rs 15 per share valuation downside for Tata Power and cumulative compensatory tariff recognised so far for Adani Power is close to Rs 23 per share.

Tata Power settled the day at Rs 85.40, down 1.95 per cent.

The tribunal, in April last year, had said that the two companies needed to be compensated as the change in Indonesian laws on coal export prices were outside the control of these companies.