India’s largest private unified power company, is gearing up to join an extending club of Indian companies looking to raise extra capital through a rights issue, people with direct knowledge of the matter told Moneycontrol.
The new fundraising plan would be in addition to an ongoing process to establish an infrastructure investment trust, or InvIT, for the firm’s renewable energy assets, they said.
“They are in progressive discussions with advisors and want to track the rights issue route to reduce their debt burden and strengthen the balance sheet for expansion purposes,” according to the related sources.
Tata Power also said, that it will launch a rights issue of considerable size because of the size of debt. “It should definitely be uphill of Rs 2,000 crore and the final approved amount could be even higher.”
To add further, a spokesperson of the company informed that, the company may look at launching the rights issue before mid-August prior to the June quarter results. “Merchant bankers are likely to be finalised in the next few days,” this person said.