Signals, Powered By EquityPandit
Tata Power Co Ltd has kickstarted work on a rights issue, which will see the company raise at least Rs 2,000 crore or more, as the country’s largest private power generation firm looks to deleverage its balance sheet and raise resources to tap new opportunities.
“Tata Power has appointed investment bank Kotak Mahindra Capital to start work on the rights issue. They will be appointing another three to four banks soon,” said a person aware of the company’s plans, on the condition of anonymity.
Tata Power could raise at least Rs 2,000 crore from the rights issue, although the final size of the offer could be significantly larger, he added. ‘The rights issue will be launched next quarter,’ he said.
Recently, Tata Power said it wants to alter its Memorandum of Association to increase the authorised share capital from the existing Rs 579 crore (divided into 350 crore equity shares of Re 1 each and 2.29 crore cumulative redeemable preference shares of Rs 100 each) to Rs 779 crore by creating 200 crore additional equity shares of the same face value.
