Shares of Tata Power jumped nearly 7 percent on Tuesday after the company announced a 51 percent acquisition in TP Central Odisha Distribution Ltd (TPCODL) for Rs 178.5 crore. Grid Corporation of Odisha (GRIDCO) will hold the remaining 49 percent stake in TPCODL.

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The stock rose as much as 6.8 percent to Rs 42.25 per share on BSE. At 11:25 am, the stock was up 3 percent to Rs 40.70 as compared to a 0.7 percent or 244 points rise in BSE Sensex at 33,547.

"Tata Power today announced that it has taken over the management of Central Electricity Supply Utility of Odisha (CESU), after receiving the Letter of Intent (LOI) from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha’s five circles consisting of Bhubaneshwar, Cuttack, Puri, Paradeep and Dhenekal," the company said in its press release.

Incorporated in April 2020, TPCODL is a wholly-owned subsidiary of GRIDCO to carry out the business of Central Electricity Supply Utility of Odisha (CESU).

Praveer Sinha, CEO & MD, Tata Power said, “Our tie-up with CESU is a huge development for Tata Power. We are thankful to the Odisha Government and OERC for giving us this opportunity. We are committed to providing reliable, affordable, and quality power supply along with superior customer service, backed by innovative technology. We constantly strive to become the most preferred distribution company in the country. The success of our Delhi, Mumbai, and Ajmer Distribution businesses are a testament to this fact.”

For the quarter ended March 2020, Tata Power posted a two-fold jump in its consolidated net profit at Rs 475 crore.