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Tata Power considering IPO of $473 million for its renewable energy unit

Tata Power Co., controlled by India’s largest conglomerate Tata Group, is considering an initial public offering for its renewable energy business that is estimated to raise about 35 billion rupees ($473 million), as per people familiar with the matter. The power firm has abandoned previous plans to seek a partner to invest in its green assets via an investment trust, the people told, asking not to be identified as the information is private.

Tata Power will seek approval for the IPO plan from its board, they said. If they agree, the proposed listing in Mumbai could take place as soon as this year, one of the people informed. Discussions are ongoing and details such as the size and timing could change, the people updated. A representative for Tata Power couldn’t instantly comment.

Tata Power’s plan to list its green power business comes as India’s renewables segment is forecast to expand rapidly, driven by increasing power demand and decarbonization efforts. The country is working to meet Prime Minister Narendra Modi’s goal to multiply its renewable power capacity almost five times over the next decade.

India’s largest renewable energy producer, ReNew Power, decided to merge with a U.S. special purpose acquisition firm in February, giving it an $8 billion enterprise value



The firm, including subsidiaries and joint entities, has generating capacity of 12.8 gigawatts, about 30% of which comes from clean energy, as per its website. Its projects include solar power generation, installation, manufacturing and maintenance, and also wind power generation. India’s largest renewable energy producer, ReNew Power, decided to merge with a U.S. special purpose acquisition firm in February, giving it an $8 billion enterprise value.

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