Tata Power Gets Shareholders' Nod To Raise Rs 2,600 Cr From Tata Sons

Tata Power on Thursday said it has received shareholders' approval to raise Rs 2,600 crore via issuance of preferential shares to its promoter Tata Sons.

The resolution was approved at the company's annual general meeting (AGM) with requisite majority, it said in a regulatory filing.  'The Scrutinizer's Report was received on Thursday, 30th July 2020 and, as set out therein, all the Resolutions have been passed with the requisite majority,' it said.

Earlier this month, Tata Power's board had approved a proposal to raise Rs 2,600 crore via issuance of preferential shares to Tata Sons.  Under the proposal, about 49.06 crore shares will be allotted to the parent of the salt-to-software group at Rs 53 per share.

Tata Sons' shareholding in Tata Power will increase to 45.21 per cent from 35.27 per cent after the issue.

Tata Power said it is working on a strategic turnaround plan to strengthen its fundamentals.

It aims to deleverage the balance sheet by mix of divestment and business restructuring, which will improve the capital structure of the company, it added.

(PTI)