Tata power to raise Rs 26000 crores from Tata sons through issuing preference shares


Tata Power is the largest integrated power company in India along with its subsidiaries and entities, has a managed capacity of 12,742 MW. It has nearly 2.6 GW of renewable energy assets in the wind and solar about for 30%, and also has a presents across the entire power value change that helps the generation of renewable as well as the conventional power which including transmission and distribution of trading and coal & freight logistics, hydro and thermal energy. With its 105 years track record of project execution excellence, technology leadership, customer care, Tata Power is with multi-fold growth and committed go lighting up lives for the coming generations.   They are serving more than 2.6 million consumers and developed the first 4000 MW ultra-mega power project at Mundra, Gujarat in India based on super critical technology. Tata Power has commenced its Joint Venture with Govt of Odisha on 1st June 2020, for the retail supply and distribution in Odisha which includes the five circles purl, Pradeep Dhenakal, Cuttack and Bhuvaneshwar. The Tata Power seeks the approval of shareholders to raise Rs 2600 crore through issuance of preferential shares to Tata Sons In an annual general meeting. At the beginning of July 2020, the Tata Power board approved a proposal to raise Rs 2600 crore. About 49.6 crore shares will be allotted to the parent of the salt-software, was the decision under this proposal and, each at the rate 53 and that indicates 15% of the premium to the closing price on July 1.

By this decision, Tata Son’s shareholding will increase 35.27% and consequently Tata share Groups shareholding also will increase to 46.86% from 37.22%.To strengthen the fundamentals, Tata power is focusing on new strategic plans. To improve the capital structure of the company Tata Power aims to deleverage the balance sheet by a mix of divestment and business restructuring. The annual general meeting of the Tata Power will be held on 13 July 2020, wherein the company will seek the approval of the preferential issue from the shareholder. These actions are expected to improve the long term shareholders value and strengthening the balance sheet, improving overall return through divestment of non-

core assets and certain overseas, and further strengthens the effort to reduce debt and capitalize the company for its future growth. Similarly, the approvals for setting up an InvIT from the Boards in principle is also an important step towards restructuring and developing renewable business and unlocking value. This non-core and overseas assent will help them in deleveraging in preparation and planning for an ambitious growth plan over the next long period.