Tata Power climbs 4% as Mehli Mistry buys 2.57 crore shares

NEW DELHI: Shares of Tata Power climbed 4 per cent in trade on Friday following an ET report suggesting that Mehli Mistry, the promoter of M Pallonji and Co, has acquired 2.57 crore shares in the company.

The move is seen as a bid to counter cousin Cyrus Mistry, the ousted chairman of Tata Sons, the report said.

Following the report, the stock jumped 4 per cent to hit a high of Rs 77.95 on BSE.

The timing of the stake buy is significant given the fact that Cyrus Investment and Sterling Investment, which belongs to Cyrus Mistry’s family, have filed a petition before the National Company Law Tribunal citing the ‘close relationship’ between Ratan Tata and Mehli Mistry.

The purchase through the stock exchanges was valued at about Rs 200 crore and amounts to about 1 per cent of Tata Power’s equity, a source close to Mehli Mistry said.

Tata Power is trading at 24.89 times its trailing 12-month earnings per share (EPS).

The stock has returned 3.85 per cent against a 5.4 per cent rise in Adani Power and a 1 per cent fall in Reliance Power.