Renascent Power Ventures Private Limited (Renascent Power), a wholly owned subsidiary of Resurgent Power Ventures Pte. Limited (Resurgent Power) has signed a Share Purchase Agreement (SPA) with a consortium of lenders led by State Bank of India (SBI) to acquire 75.01% stake in Prayagraj Power Generation Company Limited (PPGCL), which owns and operates a 1,980 MW supercritical power plant in the state of Uttar Pradesh, India. This transaction is the result of stressed asset resolution process initiated by the lenders through a competitive bidding process.
The SPA will be subject to customary approvals from regulatory authorities and the transaction is expected to be closed over the next few months.
Resurgent Power is a joint venture between Tata Power International Pte. Ltd (TPIPL) (a wholly owned subsidiary of Tata Power), ICICI Bank Ltd. (ICICI Bank) and other reputed global investors including Kuwait Investment Authority, State General Reserve Fund, Oman, set up to acquire assets in the Indian Power Sector. TPIPL owns 26% stake in Resurgent Power and the balance 74% is held by ICICI Bank and other global investors.
Speaking on the occasion, Mr. Praveer Sinha, CEO & MD, Tata Power and Director of Resurgent Power said, "The JV has been evaluating various assets that meets its investment objective and Prayagraj fits into that. Resurgent looks forward to maximizing its potential using the expertise of all the partners".
Shares of TATA POWER CO.LTD. was last trading in BSE at Rs.76.4 as compared to the previous close of Rs. 76.6. The total number of shares traded during the day was 360426 in over 1390 trades.
The stock hit an intraday high of Rs. 77.25 and intraday low of 75.1. The net turnover during the day was Rs. 27505584.