Ahmedabad, March 23
The Ahmedabad-based Torrent group has announced that its three different companies in the power sector will be merged into one entity called Torrent Power Ltd.
The move follows the three separate companies - Torrent Power AEC Ltd, Torrent Power SEC Ltd, and Torrent Power Generation Ltd - setting up committees on January 24 to work out a new business model for the group's power business.
The committees recently submitted their reports and recommended restructuring the operations of the company by way of a merger to form a new entity.
Based on the recommendation, Torrent has decided to merge the three companies on a going concern basis.
Last year, the group, which has interests in pharmaceuticals and power, had put the three companies in the power sector under a common umbrella brand name - Torrent Power.
The move, according to the group, is expected to help it leverage existing resources to enhance bargaining power and improve the ability to take advantage of the upcoming investment opportunities in the country's power sector.
The group has also announced exchange rates for the scheme of amalgamation based on a valuation carried out by Ernst and Young.
The consolidated entity will have an installed capacity of 1,630 MW and a customer base of 18 lakh in Ahmedabad, Gandhinagar, and Surat.