Tata Power considering a $473-million IPO for its renewable energy unit
The power company is said to have abandoned earlier plans to seek a partner to invest in its green assets via an investment trust.
Tata Power, controlled by Tata Group, is weighing an initial public offering for its renewable energy business that couÂld raise about Rs 35 billion ($473 million), according to people familiar with the matter.
The power company has abandoned earlier plans to seek a partner to invest in its green assets via an investment trust, the people said, asking not to be identified as the information is private.
Tata Power will seek approval for the IPO plan from its board, they said. If they approve, the proposed listing in Mumbai could take place as soon as this year, one of the people said.
Deliberations are ongoing and details such as the size and timing could change, the peoÂple said. A representative for Tata Power couldn’t immediately comment.
Tata Power’s plan to list its green power business comes as India’s renewables sector is forecast to expand rapidly, driven by increasing power demÂand and decarbonization effoÂrts.
The country is working to meÂet Prime Minister NarenÂdra Modi’s target to multiply its reÂnÂewable power capacity five times over the next decade.
The company, including subsidiaries and joint enÂtities, has geneÂrating capacity of 12.8 Gw, about 30 per cent of whiÂch coÂmes from cleÂan eneÂrgy, acÂÂÂcÂoÂrding to its website. Its projeÂcts include solar power geÂnÂÂeÂration, installÂation, manÂuÂfacturing and maiÂntÂenance, as well as wind powÂer generation.
India’s largest reneÂwable eneÂrgy producer, ReNew PoÂwÂer, agreed to merge with a US spÂecial purpose acqÂuiÂsition fiÂrm in February, giving it an $8 billion enterprise value.