What’s Next For Tata Power’s Renewable Unit?
Tata Power Ltd. missed its deleveraging target as the company failed to launch an infrastructure investment trust by carving out its renewable business. That was critical to pare debt by Rs 25,000 crore.
Bloomberg reported citing unnamed people in the know that the company is planning an initial public offering for the renewable unit. In an exchange filing, Tata Power called the report "speculative", saying it hasn’t taken any decision for the business as yet.
In an interview with BloombergQuint, Chief Executive Officer Praveer Sinha said the divestment for its renewable business along with Zambian and Georgia units will all take place this financial year. And the company might come out with “a bigger and a better plan for the portfolio”. But he didn't offer any details or clarity.
Pressure On Solar Margins To Continue
Sinha said the margins of for solar manufacturing business will remain under pressure on account of higher basic customs duty and higher shipping costs. He expects things to stabilise by second half of the financial year given rising prices of Chinese modules.
Watch the full interview here: