Tata Power up 3% on plans to raise Rs 1,200 cr via NCDs

Shares of Tata Power were nearly 3 percent higher after investors cheered the company’s fundraising plans. In a notification to the exchanges, the company said that Welspun Renewables Energy (WREPL), its wholly-owned step down subsidiary successfully issued non-convertible debentures of face value of Rs. 10 lakh each, aggregating to Rs. 1,200 crore on a private placement basis. “The NCDs have been rated AA(SO) by CARE and carry a coupon of 8 percent PA payable annually. The proceeds from the NCDs will be primarily used to prepay existing higher cost debt in WREPL and its subsidiaries,” it told the exchanges. In FY16, Tata Power Renewable Energy (TPREL), a wholly owned subsidiary of Tata Power, completed the acquisition of Welspun Renewables Energy Private (WREPL) to become the largest renewable energy company in India.

The company was also in the news recently when its total generation from renewable energy sources touched 3133 MW in this financial year. “Taking a step further towards building a greener portfolio last year, Tata Power revised its share of non-fossil fuel based capacity up to 35-40 percent by 2025,” the company said in a statement issued earlier. The company has renewable energy projects in states like Maharashtra, Gujarat, Madhya Pradesh, and Rajasthan and is currently in the process of implementing nearly 500 MW of renewable power projects at various locations. The stock has showed an upward trend after having moved up nearly 8 percent in the past one month. In fact, in the past five days, the stock has risen over 5.5 percent. At 12:00 hrs Tata Power Company was quoting at Rs 81.70, up Rs 1.20, or 1.49 percent, on the BSE. It has touched an intraday high of Rs 82.70 and an intraday low of Rs 80.40.

Source:Moneycontrol