According to a report by ET, Tata Power is in developing conversations with investors, comprising the Canadian Pension Plan Investment Board (CPPIB) as well as Singaporean sovereign fund Temasek Holdings and private equity company General Atlantic to increase as much as $600-700 million (Rs 4478 crore – 5225 crore) for the renewable energy industry at a wealth valuation of around $67 billion.
The agreement is at an advanced phase and is plausible to be finalized in the arriving weeks, as the salt-to-steel conglomerate appears to reduce debt and boost its balance sheet forward of a planned public issue of the alternate energy unit.
However, Sovereign money supervisors of the Middle East were also being aimed for a possible transaction. The asset monetization of renewable energy will help the firm meet long term marks.
Tata Power had proposals to go for an InVit. It had held negotiations with Malaysia’s Petronas for possible involvement of up to $2 billion, but the talks couldn’t finish into a transaction. However, neither Tata Power, General Atlantic, nor Temasek Holdings commented on the issue.
Tata Power has one of India’s vastest renewable energy industries with an operating capability of 2.6 GW comprising wind and solar in a 32:68 ratio dissipate across 11 states, according to rating agency ICRA.
Tata Power has form aims to set up the renewable potential of 15 and 25 GW by FY25 and FY30, respectively. The formulated monetization is the potential to bring in its ambit all green industries which comprise renewable, solar EPC, solar pumps, rooftop solar and EV charging.
The renewable industry had gross debt of Rs 11,274 crore at the end of September 2021. At the recent capacity, Tata Power Renewable Energy is one of the prime three players in the renewable energy space. Tata Power Renewable Energy had an operating potential of 2261 MW, comprising 1710 MW of solar plants and 551 MW of wind plants, according to the company’s annual summary of FY21 which had gained 2953 MW by September 30, 2021.
Among the operating investments, the company has the biggest potential in Karnataka with 517 MW, followed by 400 MW in Rajasthan. Andhra Pradesh with 306MW and the balance in other states. In FY21, the firm had revenue of Rs 2211 crore against the Rs 2176 crore a year before, with an earning of Rs 286 crore.