Tata Power looks to raise Rs5,000 crore for RE

It is reported that Tata Power is in advanced talks with investors, including Canadian Pension Plan Investment Board (CPPIB) as well as Singaporean sovereign fund Temasek Holdings and private equity firm General Atlantic to raise as much as $600-700 million (Rs 4,478 crore- 5,225 crore) for its renewable energy business at an equity valuation of around $6-7 billion.

The deal is reportedly at an advanced stage and is likely to be concluded in the coming weeks, as the salt-to-steel conglomerate looks to pare debt and strengthen its balance sheet ahead of a planned public issue of the alternate energy unit.

Sovereign money managers of the Middle East were also being tapped for a potential transaction. The asset monetisation of renewable energy will help the company meet long-term targets.

The company also had plans to go for an InVit. It had held negotiations with Malaysia’s Petronas for a potential investment of up to $2 billion, but the talks couldn’t culminate into a transaction.