Orient Green Power rallies 5% even as merger talks hit roadblock

NEW DELHI: Shares of Orient Green Power rose over 5 per cent in Friday's trade amid reports that merger talks between the company and IL&FS Wind Energy have hit a roadblock. The reports suggested that a plunge in wind energy tariffs in auctions conducted hurt the talks after the negotiations began early this year.

Following the report, the stock rose over 5 per cent to hit a high of Rs 9.25 on BSE. It settled at Rs 9.07, up 3.54 per cent on Friday.

The period of exclusivity for negotiating the merger that would have created the country’s largest listed wind energy company has ended and both parties are now looking at other options, people close to the development told ET.

Orient Green Power (OGPL), however, said a deal is still possible.

With the wind tariff dropping sharply to Rs 3.46 per unit in auctions held in February, a number of state discoms have been trying to avoid signing power purchase agreements (PPAs) committed to earlier at higher tariffs.