Tata Power Board approves to raise Rs 2,600 crore from its promoters

Date:

Trending

Leaders in Power Utility company, Tata Power on Thursday said, “Its board has approved a proposal to raise Rs 2,600 crore through issuance of preference shares to its promoters.”

- Advertisement -

In a regulatory filing, the company said, “The board o directors of the company approved the issuance of equity shares through a preferential issue to the promoter, Tata Sons, for Rs 53 per equity share for an aggregate sum of Rs 2,600 crore subject to shareholder approvals.”

“The board also gave in-principle approval for setting up InvIT (Infrastructure Investment Trust) for the company’s renewable business on terms and conditions to be discussed with potential investors,” the filing added.

“The company will issue 49,05,66,037 equity shares on a preferential basis to Tata Sons Private Limited (Tata Sons) for an aggregate consideration of Rs 2,600 crore,” the filing said.

“The issue price is fixed at Rs 53 per equity shares representing a 15 percent premium to Wednesday’s closing,” it added.

Adding to the filing, Tata Power said, “The allotment of the equity shares pursuant to the preferential issue will increase the shareholding of Tata Power to 45.21 percent from 35.27 percent.”

“Tata Power is working on a strategic turnaround plan to strengthen the fundamentals of the company through a mix of divestment and business restructuring that will deleverage the balance sheet and improve the capital structure of the company,” the company said.

“The long-term strategic plan involves reducing debt, thereby strengthening the balance sheet and improving overall return metrics through: Divestment of non-core and certain overseas investments. Restructuring of some of its businesses to unlock value and simplify the structure of the Company and its subsidiaries. Consequent to this, the Company has decided to pursue setting up of InvIT for its renewables business. Raising equity to reduce unsustainable debt in Tata Power and/or its subsidiaries,” Tata Power said.

- Advertisement -

“The Promoters of the Company are fully supportive of the plan and are willing to back the Company. The support of Tata Sons signals their strong conviction in the prospects of the Company. This benefits all shareholders by reducing debt, allowing the business to continue to invest and execute its long-term growth strategy,” the company said.

Speaking on the fundraise, Praveer Sinha, CEO & Managing Director of Tata Power said, ” “This equity raise demonstrates the confidence reposed by the Tata Group in the Company’s capabilities and further strengthens the effort to reduce debt & capitalize the Company to invest in future growth.”

“Similarly, the Board’s in-principle approval for setting up an InvIT is another important step towards restructuring the renewables business and unlocking value. This along with the divestment of various non-core and overseas assets will help in deleveraging in preparation for an ambitious growth plan over the next decade,” Praveen added.

Further adding to the statement, the company said, “The Annual General Meeting (AGM) of the shareholders will be held on 30 July 2020. Wherein the company will seek shareholders’ approval for the preferential issue.”

THE SNAPSHOTS, IN YOUR INBOX

Get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Gadgets: OPPO Find X8 Series to Launch Globally with MediaTek Dimensity 9400 SOC

OPPO, the world's leading smart device brand will bring the flagship MediaTek Dimensity 9400 SoC to global markets in its upcoming OPPO Find X8...

LTC UPDATE: Gate io Lists Litecoin Under Meme Coins

US-based cryptocurrency exchange platform Gate.io has listed Litecoin (LTC) under its meme coin category. The announcement was made on Friday via the company’s official Twitter account, where Gate.io stated, “We are now officially the first major exchange to have listed @litecoin under the memecoin section....

Pokarna Engineered Stone Limited Commits Rs 440 Crores for New Bretonstone Line

Pokarna Engineered Stone Limited (PESL) said on Tuesday it will invest Rs. 440 crore...

Coinbase launches COIN50 Index To Track Top 50 Cryptos On its Exchange

Leading crypto trading platform Coinbase on Tuesday announced the launch of the Coinbase 50...
00:01:42

The Trump Effect: Crypto Market Hits $3 Trillion Market Cap; Bitcoin Surges $87K, While Ethereum Stood At $3k

Following Donald Trump's presidential election victory, the cryptocurrency market surged, reaching a whopping $3.02...
00:01:10

Tom Homan Old Video Goes Viral, After Donald Trump Taps Him As Border Czar

An old video of Tom Homan, former acting head of US Immigration and Customs...

UltraverseNFT Launches Sandalwood backed NFT for Eco-Conscious Investors

UltraverseNFT is proud to introduce its groundbreaking Sandalwood NFTs, designed to redefine eco-conscious investments...

Why BITBinvest.com is Expanding Worldwide & Capturing High-Profile Trader’s Attention?

BITBinvest.com has rapidly emerged as one of the leading companies in online trading, making...
00:00:48

Donald Trump To Shut Department of Education; Plans To Shift Responsibilities To States

President-elect Donald Trump announced on Monday that his administration intends to close the Department of Education in Washington, D.C., and transfer education responsibilities to...

4 Key Ways Robotics May Change Warehouse Operations by 2030

The landscape of warehouse operations is poised for significant transformation by 2030 with the...

VIDEO: Israeli PM Netanyahu Visits Lebanese Border, Promises Strong Action Against Hezbollah

During a recent visit to the Lebanese border, Israel's Prime Minister Benjamin Netanyahu highlighted...

Serhii Tokarev’s Strategies for Improving Math Education in Ukraine

Mathematics is essential in many areas of life, from technology and space exploration to...
00:11:10

FULL SPEECH: Cardi B Addresses Kamala Harris Rally In Wisconsin

Singer Cardi B addressed a rally in Milwaukee, Wisconsin, showing her support for presidential...

Finzilo Review | 8 Trading Features That Make Finzilo Stand Out

When it comes to online trading platforms, choosing the right one can significantly impact your trading success. In this Finzilo review, we’ll explore eight...

US President Biden Apologies To Native Indians For Horrific Boarding School Policy

During a visit to the Gila River Indian Community in Arizona, President Joe Biden issued a formal apology for the United States' 150-year boarding school policy in which many Indigenous children were physically, emotionally, and sexually abused. Addressing the community, President Biden said, “I’m doing...

Kriya: PM Netanyahu Closely Monitors ‘Military Operations’ On Iran

The Israeli Prime Minister's Office has released a new video showing Prime Minister Benjamin...

Iran Should Not Respond To Israeli Attack: UK PM Keir Starmer

The United Kingdom's Prime Minister Keir Starmer has requested Iran to avoid retaliation after...

TVS Motor Achieves Highest Ever Revenue and Profits in Q2

TVS Motor Company posts highest ever operating revenue of Rs. 9,228 Crores registering a...
00:00:00

Live From Parliament: UK Deputy PM Angela Rayner takes PMQs

London News: The United Kingdom (UK) deputy prime minister Angela Rayner takes questions from...

‘Not Our King’ Australian Politician Lidia Thorpe Heckled King Charles

Following King Charles' keynote speech in the Australian parliament, Senator Lidia Thorpe accused the...

Live: UN Security Council Meeting on Russia Ukraine Security

The members of the United Nations Security Council met on Monday to discuss the...
00:05:21

Mark Cuban Slams Donald Trump’s Tariff Plan at Kamala Harris Rally

Cuban says Trump’s plan to impose over 60% tariffs on Chinese imported products would hit American shoppers, especially during the holidays.

Harnessing Market Movements: Strategic Index Trading for Diversified Portfolios

As global financial markets continue to evolve, index trading has become a key focus...

Identifying the Key Loopholes in the Current Digital Wallets

Digital wallets have evolved to meet the demands of decentralized solutions built with blockchain...

Serhii Tokarev’s Strategies for Improving Math Education in Ukraine

Mathematics is essential in many areas of life, from technology and space exploration to...

APP Reviews: Bengali Betting Sites

Recognizing the increasing demand for an exhilarating and convenient gambling experience in the Bengali...

Interactive Learning: Elevating Concept Clarity Through Online Education

In today’s digital age, virtual learning has taken center stage, with live online lessons...
00:00:00

United Nations Security Council Holds Meeting On Israel Middle East Situation

UN LIVE: Members of the United Nations Security Council meet to discuss the Israel...

Russian Producers Ready to Increase Fertilizer Supplies to India

Moscow, Russia: Russian companies are ready to increase fertilizer supplies to India, but the...
00:11:10

FULL SPEECH: Cardi B Addresses Kamala Harris Rally In Wisconsin

Singer Cardi B addressed a rally in Milwaukee, Wisconsin, showing her support for presidential...

Harnessing Market Movements: Strategic Index Trading for Diversified Portfolios

As global financial markets continue to evolve, index trading has become a key focus...

Leveraging AI in Press Release Distribution: The Future of PR

Over the years the field of Public Relations (PR) has undergone significant transformation with...

Identifying the Key Loopholes in the Current Digital Wallets

Digital wallets have evolved to meet the demands of decentralized solutions built with blockchain...