Tata Power shares jump 4% after company takes over Odisha’s power distribution and announces plans to reduce debt
Tata Powercompleted the acquisition of 51% stake in TP Central OdishaDistribution Ltd (TPCODL) for ₹178.5 crore.
- The shares of the company climbed over 4% on June 2.
- Tata Power has a market cap of nearly ₹10,697.38 crore.
- The acquisition will see Tata Power taking over the power supply business of five cities in Odisha.
Tata Power has a market cap of nearly ₹10,697.38 crore.
At 12:10 am, the shares were trading 4.18% higher at ₹41.10 a piece on the BSE.
Meanwhile, the company is hoping to raise about ₹3,000 crore from divestment of non-core operations and restructuring the renewable energy business as it aims to cut the debt by around 40% in the current financial year.
“Our attempt is to reduce the debt to the levels of ₹25,000 crore by the end of this fiscal year from ₹44,000 crore; it is an indicative target. We are looking at various means to do it. We have already started our divestment process,” Managing Director Praveer Sinha told ET.
Tata Power said that the Grid Corporation of Odisha (
However, now Tata Power has taken over the management of CESU, and will now be responsible for the distribution and retail supply of electricity in Odisha's five circles consisting of Bhubaneswar, Cuttack, Puri, Paradeep and Dhenkanal.
In the fourth quarter ended March 31, Tata Power posted a two-fold jump in its consolidated net profit at ₹475 crore.
As per the agreement, the company will retain all the existing employees of CESU and will govern them by their existing policy structure.
"Our tie-up with CESU is a huge development for Tata Power. We are committed to provide reliable, affordable and quality power supply along with superior customer service, backed by innovative technology. The success of our Delhi, Mumbai and Ajmer distribution businesses are testament to this fact," Tata Power CEO & MD Praveer Sinha said in a statement.
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