Tata Power, India’s largest integrated power company, has approved the establishment of an infrastructure investment trust (InvIT) for the company’s renewable business.
Tata Power said it is working on a strategic turnaround plan to strengthen the fundamentals of the company through a mixture of divestment and business restructuring that will deleverage the balance sheet and improve the capital structure of the company.
The invIT is part of this long-term strategic plan, which also involves reducing debt through the divestment of noncore and certain overseas investments, restructuring some of its businesses, and raising equity to reduce unsustainable debt in Tata Power and/or its subsidiaries.
The company’s board of directors also approved issuance of some 490 million equity shares on a preferential basis to Tata Sons Pvt. Ltd. for an aggregate consideration of Rs. 2,600 crore. ($345.7 million). The issue price for the equity shares represents a 15 percent
