Tata Power plans to raise Rs 2000 cr via Rights Issue: Sources

Tata Power plans to launch a rights issue to raise around Rs 2000 cr, sources with direct knowledge said. Tata Power is expected to go for a fast track issuance post Q3 results are announced on February 7. The company has appointed JM Financial, HSBC and BNP Paribas as advisors to the share offering.

“Market response to Tata Power’s rights issue depends a lot on the quarterly performance” an analyst said. Tata Power has a debt pile of over Rs 36000 cr and the Debt/Equity ratio at 3.1x. The company has stated in the past that it will be looking at equity funding to reduce debt level.

To an ET Now query on the development, Tata Power’s spokesperson said, “The Company doesn’t respond to market speculations. We maintain that we are evaluating various options to create shareholder value.”