Tata Power said it has got shareholders’ approval to raise up to Rs 5,500 crore through issuance of non-convertible debentures on private placement basis.
The company had sought shareholders’ approval at the annual general meeting held last week through a special resolution which was passed by the requisite majority, as per a BSE filing.
The special resolution had stated in the AGM notice that the consent of the company is accorded to the board “to subscribe to cumulative/non-cumulative, listed or unlisted, redeemable non-convertible debentures (NCDs)…aggregating to an amount not exceeding Rs 5,500 crore or its equivalent in one or more currencies on private placement basis, in one or more series/tranches”.
Tata Power also got shareholders’ nod for appointment of Praveer Sinha as its CEO and Managing Director.
According to the notice, the long-term borrowings of the company as on March 31, 2018, were about Rs 12,300 crore.
Tata Power said it plans to borrow around Rs 5,500 crore within 12 months from the date of passing of this resolution. The bond/loans will be repayable in the next 12 months including the loans taken for acquisition of Walwhan Renewable Energy Ltd.
The company also intends to raise Bonds up to Rs 2,000 crore to part refinance Coastal Gujarat Power Limited foreign currency loan, if required.
Among the various options for raising such funds, the company may need to raise funds by way of NCDs of up to Rs 5,500 crore to meet these requirements, it added.
In March, Tata Power had appointed Sinha as its new Chief Executive Officer and Managing Director from May 1. He was then serving as the CEO & Managing Director of Tata Power Delhi Distribution Ltd (TPDDL).
TPDDL is a public-private partnership (Joint Venture) between Tata Power and the Delhi government, supplying power to over seven million people in North and North-West Delhi.