New Delhi,July 03, 2020.
Tata Power on Thursday said the company’s board had approved an increase in its promoter Tata Sons’ stake to 45.2 per cent for Rs 2,600 crore.
Tata Power’s board also approved setting up an infrastructure investment trust (InvIT) for its renewable business on Thursday. The move, the company said, is part of a strategic turnaround plan.
Tata Power would raise Rs 2,600 crore through a preferential issue to Tata Sons at a price of Rs 53 per equity share. The issue price for the equity shares has been fixed, representing 15 per cent premium to Wednesday’s closing price. Pursuant to the equity issue, Tata Sons’ shareholding will increase to 45.21 per cent, from 35.27 per cent. Consequently, Tata Group’s shareholding will increase to 46.86 per cent, from 37.22 per cent.
The board of directors of Tata Power has approved issuance of 490,566,037 equity shares on a preferential basis to Tata Sons for an aggregate consideration of Rs 2,600 crore.” The issue is subject to approval and Tata Power will seek shareholder approval at its annual general meeting on July 30.
According to the company’s latest presentation, Tata Power’s consolidated renewable capacity was at 2,623 megawatt, 2019-20 revenue at Rs 3,977 crore and a profit after tax at Rs 441 crore for the year. Net debt for its renewable portfolio stands at Rs 10,622 crore.