Tata Power plans to create InvIT for renewables business; shares rise over 2%

NEW DELHI: Tata Power has planned to set up an Infrastructure Investment Trust (InvIT) for its renewable energy assets, a move that can reduce its debt further.
The Tata Group company has filed an application with market regulator Sebi (Securities and Exchange Board of India) for an in-principal approval for creation of an InvIT.
"Anchor investor(s) in the InvIT have started their due diligence of the assets proposed to be transferred to InvIT and we expect to sign the binding documents in next few months.Necessary board and shareholder approvals will be sought on finalization of the binding agreements," Tata Power mentioned in an exchange filing on Thursday.
"Creation of the InvIT will provide a suitable structure to expand its renewable business as laid out in its FY25 strategy. The company is progressing on setting up of the InvIT as per the initial laid timelines and is confident of completing this transaction in this financial year," the company added.
Shares of Tata Power settled 2.27 per cent higher at Rs 54.15 on Friday.