Tata Power will carve out a separate fully-owned subsidiary TPREL by aggregating its renewable energy assets to enhance focus on clean energy. “The proposed structuring involves carving out of 500 MW of renewable assets of the Company to its subsidiary Tata Power Renewable Energy Ltd (TPREL) and its subsidiaries,” the company said in a press release recently. It will have sharper focus on renewable energy capacity addition and restructuring of assets.The assets include 376.5 MW of wind assets in Gujarat, Maharashtra and Tamil Nadu, 3 MW solar asset in Mulshi and 120 MW of waste heat recovery based power plants at Haldia, West Bengal.
The proposed structuring is sought to be implemented by way of a Scheme of Arrangement under Sections 391 and Section 394 and other applicable provisions of the Companies Act, 1956, it said. The renewable wind assets — Bramhanvel (11.3 MW), Khandke (50.4 MW), Samana (50.4 MW), Gadag (50.4 MW), Visapur (10 MW), Sadawaghapur (17.5 MW), Agaswadi (49.5 MW) and solar assets at Mulshi (3 MW) are proposed to be aggregated in TPREL.Additionally, Supa (17 MW) (Renewable Energy Undertaking No. 2), Nivede (21 MW), Poolavadi (99 MW) and Haldia (120 MW) are being transferred to four SPV companies which would be wholly owned companies of TPREL, it said.
Tata Power CEO and MD Anil Sardana said, “We aim to create a focused clean and renewable energy business in TPREL with its own growth trajectory.””Since the aggregation of renewable assets is being done to a wholly owned subsidiary of the Company, the shareholders in the parent company shall have the same or better value accruing to them as earlier, even after the proposed restructuring.” he added.TPREL is the primary vehicle through which Tata Powers goal of 20-25 percent generation capacity from clean energy sources will be achieved. The current installed capacity of TPREL is 220 MW (158 MW of wind and 54 MW of Solar) with 250 MW of renewable energy projects under construction.
Post structuring, the total installed capacity of TPREL will be about 720 MW with additional 250 MW under construction. Other existing waste heat recovery based power plants of the company in certain JVs are also intended to be aggregated, subject to appropriate approvals and consents, the company said.
Tata Power stock price
On November 10, 2015, at 11:07 hrs Tata Power Company was quoting at Rs 68.30, down Rs 0.05, or 0.07 percent. The 52-week high of the share was Rs 94.10 and the 52-week low was Rs 55.55. The company’s trailing 12-month (TTM) EPS was at Rs 3.69 per share as per the quarter ended September 2015. The stock’s price-to-earnings (P/E) ratio was 18.51. The latest book value of the company is Rs 58.15 per share. At current value, the price-to-book value of the company is 1.17.