Tata Power Company shares rose 2.65% to Rs 217.1 on the BSE in intraday trade Tuesday after the company inked a Memorandum of Understanding (MoU) with the Tamil Nadu government for a Rs 3,000-crore investment to build up a giant solar manufacturing plant. The stock was up for the third day in a row, having gained 7% over time.

Also Read| Sensex surges 320 points while Nifty around 15,930 in early trade

The MoU calls for the establishment of a greenfield 4GW solar cell and 4GW solar module manufacturing factory in Tamil Nadu’s Tirunelveli district. The plant investment will be spread out over a 16-month period.

Also Read| Stocks that should be on your watchlist on Tuesday, July 5, 2022

“Tata Power Solar’s new production facility is being set up with the support and assistance of Tamil Nadu Government, and will help to meet the rising demand for clean energy solutions in the country apart from providing huge employment opportunities,” the company said.

Also Read| Trending Stocks: Tata Steel, Vedanta, Bajaj Auto and others in news today

The Tata Group Company is one of India’s largest integrated power businesses, having a total installed/managed capacity of 13,735 MW across its subsidiaries and jointly owned organisations.

Also Read| US inflation rate at a 40-year high | A timeline: 1930-2022

The Company is present throughout the power value chain, including renewable and conventional power production, transmission and distribution, coal and freight, logistics, and trade.

Tata Power has underperformed the market during the last three months, losing 21% vs the S&P BSE Sensex’s 11% loss.

Also Read| Trade Setup: Top 14 things to know before market opens on July 5, 2022

“Tata Power plans to enhance its cell and module manufacturing capacity by 4GW each by FY24 end for a Capex of Rs 3,400 crore. Its EPC order book, as of date, stands at Rs 1,280 crore and is gaining strong traction across the solar pump, rooftop, and EV segments with strong order bookings. The deal with Blackrock will provide the required equity Capex for renewable expansions; however, its valuation stands below our expectation,” analysts at HDFC Securities had said in their Q4 result update report dated May 9, 2022.