Tata Power has signed a share purchase agreement to acquire entire stake in Nagpur-based Ideal Energy Projects (IEPL). However, Tata Power did not divulge any financial details pertaining to the project.
IEPL owns a 540 MW thermal power plant near Nagpur in Maharashtra of which 270 MW was commissioned in May 2013. An agreement was reached between the two energy companies for a 100-per cent stake sale in IEPL.
The acquisition is subject to statutory approvals certain conditions precedent, Tata Power said in a filing to the Bombay Stock Exchange (BSE) on Wednesday.
With this deal, Tata Power's total generating capacity will increase to 8,885 MW.
We are happy to announce our intent to acquire this project in Maharashtra. This is our constant endeavour to maximise stakeholder value in line with our vision, Anil Sardana, MD and CEO Tata Power said in the statement.
This project will help Tata Power service its customers in Maharashtra competitively and also give opportunity to the company to work closely with the local communities in the vicinity to improve their quality of life, the company said in the statement.
Tata Power has set a target of generating 18,000 MW by 2022 and has projects of about 3,000 MW capacity, which are under various stages of execution.
Shares of Tata Power ended at Rs 87.00 a piece, up 1.6 points (or 1.87 per cent) on the BSE, while a total of over 3.2 lakh shares of the scrip were traded.