1. Home
  2. India
  3. Tata Power sizzles on plan to create InvIT for renewables biz
Tata Power sizzles on plan to create InvIT for renewables biz

Tata Power sizzles on plan to create InvIT for renewables biz

0
0

Tata Power rose 2.93% to Rs 54.45 after the company said it has made an application to Sebi for an in-principle approval for creation of the Infrastructure Investment Trust (InvIT).

As part of its growth strategy, Tata Power has taken several steps to deleverage the balance sheet and improve the capital structure including creation of an InvIT for its renewables business. As an update on this process, the company has already made an application to Sebi for an in-principle approval for creation of the InvIT.

“Anchor investor(s) in the InvIT have started their due diligence of the assets proposed to be transferred to InvIT and we expect to sign the binding documents in next few months. Necessary board and shareholder approvals will be sought on finalization of the binding agreements,” the company said during market hours today, 15 October 2020.

Creation of the InvIT will provide a suitable structure for the company to expand its renewable business as laid out in its FY 25 strategy. The company is progressing on setting up of the InvIT as per the initial laid timelines and is confident of completing this transaction in this financial year.

Tata Power’s consolidated net profit jumped 10.3% to Rs 268.10 crore on 16.9% fall in net sales to Rs 6,452.99 crore in Q1 June 2020 over Q1 June 2019.

Tata Power is India’s largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed/managed capacity of 12,742 MW.

The scrip has galloped 101.66% from its 52-week low of Rs 27 hit on 12 May 2020. On the technical front, the stock’s RSI (relative strength index) stood at 48.476. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 55.86 and its 200-day moving average (DMA) placed at 47.57.

Source: business-standard
Anand Gupta Editor - EQ Int'l Media Network