A arial view of Narla Tata Rao Thermal Power Station at Ibrahimpatnam near Vijayawada.This is a coal-based power projects functioning under the Andhra Pradesh Power Generation Corporation. Pic:Suman Reddy DBCCL
Tata Power completed the acquisition of 51% stake in TP Central Odisha Distribution 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.
Advertisement
The shares of Tata Power, a subsidiary of Tata Group, climbed over 4% within a few minutes of trading on June 2 after the company completed acquisition of 51% stake in TP Central Odisha Distribution Ltd (TPCODL) for ₹178.5 crore.
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.
Advertisement
‘CESU tie-up a huge development for Tata Power’
Tata Power said that the Grid Corporation of Odisha (GRIDCO) would hold the remaining 49% stake in TPCODL, which operates Central Electricity Supply Utility of Odisha (CESU).
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.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.