Tata Power will raise $300 million (Rs 1,400 crore) by selling a 15% stake in two special purpose vehicles (SPVs), which own coal mines, to fund acquisitions and cut debt. The SPVs, Bhira Investments and Bhivpuri Investments, will issue shares to private equity firm Olympus Capital Holdings Asia.
Tata Power holds a 30% stake in two coal mines in
In 2007, Tata Power had acquired a 30% stake in KPC and Arutmin coal mines for $1.2 billion, which was funded through bridge or short-term loans from banks and money advanced by Tata Power by way of so-called shareholder loans. These SPVs have a combined debt of $675 million.
The Indonesian mine produces 55-60 million tonne of coal annually. Of this, Tata Power uses around 12-14 million tonne of coal for its 4,000-mw Mundra power project.crackcrackCompany Name | CMP |
---|---|
NTPC | 368.40 |
Tata Power | 448.60 |
Power Grid Corp | 321.80 |
Adani Power | 746.90 |
Torrent Power | 1600.00 |
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