TATA SONS TO INFUSE ₹2,600 CR IN TATA POWER

MUMBAI: Tata Power Ltd on Thursday said it will raise ₹2600 crore by issuing shares to its parent company Tata Sons Pvt. Ltd through a preferential allotment. Tata Sons will buy 490.5 million shares at ₹53 each, a 15% premium over the previous day’s closing price, Tata Power said. Following the share allotment, Tata Sons’ shareholding in Tata Power will increase from 35.27% to 45.21%. Consequently, Tata group’s shareholding will increase from 37.22% to 46.86%. The capital infusion through the preferential allotment route comes after market regulator Securities and Exchange Board of India (Sebi) tweaked the takeover code two weeks ago to allow promoters to increase their stake in companies by 10% as against the previously allowed limit of 5% in one financial year, if they acquired the stake through a preferential allotment. The Sebi move was aimed at giving promoters more flexibility to infuse capital into their businesses in the current weak macroeconomic environment. Tata Sons chairman N. Chandrasekaran had said last month that Tata Sons will support group companies financially. “Tata Sons is in a strong financial position with adequate cash flows to support the group companies and new growth initiatives. Tata Sons is not looking to monetize its investments to raise capital,” Chandrasekaran had said in a statement.