Tata Power will seek shareholders’ approval for a proposal to raise Rs 2,600 crore via issuance of preferential shares to its promoter Tata Sons in an annual general meeting (AGM) later this month.
The company has listed a special resolution for issuance of shares to Tata Sons on a preferential basis in the 101st AGM scheduled for July 30, stated a regulatory filing.
Earlier this month, Tata Power board approved a proposal to raise Rs 2,600 crore via issuance of preferential shares to Tata Sons.
Under the proposal, about 49.06 crore shares will be allotted to the parent of the salt-to-software group at Rs 53 per share indicating 15 per cent premium to closing price on July 1.
Tata Sons’ shareholding in Tata Power will increase to 45.21 per cent from 35.27 per cent after the issue.
Tata Power is working on a strategic turnaround plan to strengthen its fundamentals. It aims to deleverage the balance sheet by mix of divestment and business restructuring, which will improve the capital structure of the company.