Tata Power plunge 6% after company close $2 billion Petronas deal
Tata Power Limited is an Indian electric utility company based in Mumbai, Maharashtra, India, and is part of the Tata Group. As of 15th November 2017, Tata Group held 32.47% shares in Tata Power.
Tata power shares fall after the company closes its near $2 billion investment deal with Malaysian state-owned oil and gas company Petroleum Nasional Bhd (Petronas).
The stock was trading down 5.81 percent at Rs. 98.10 in morning deals. The decision to pull out at this advanced stage was conveying last week after both sides were in the final stages of negotiating a binding term sheet.
Moreover, the Indian union has gone back to the drawing board to explore an IPO for the business. To capitalize on the mad interest of investors for green energy companies around the world, across public and private markets. As part of the listing plans, Tata Power is likely to create an umbrella entity that will house its operations. And pipeline IPP projects along with its microgrid, rooftop solar panels, and EV charging stations operations.
While the sudden U-turn has surprised many group watchers. The Tata Power stock had appreciated 285 percent in the last 1 year in anticipation of this transaction. Following Petronas, a clutch of other institutional and financial investors. It was also to come on board as part of a consortium in the future.
However, both sides are focusing on finalizing the binding agreement, said a person involved on condition of knowledge. While it was at that point it was relaying that the board was hesitant to proceed any further. Since it felt better valuations can be achieved through an IPO. The flow in the Asani Green stock, ReNew Power SPAC listing has really made everyone excited to tap the capital markets.
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