Shares of utility company Tata Power slumped by almost 11 per cent after a news report by ET stated that the company terminated its discussion on the deal with Petroliam Nasional Bhd (Petronas). However, the company is reportedly gone to the board asking them to consider an initial public offering for its renewable business.
At 2.50 pm, the shares of Tata Power was trading at Rs 91.52 per piece after a drop of 11.82 per cent. Previous closing of its shares was Rs 104.05 per share. During the day, it touched Rs 89.95 per piece.
Tata Power cancelled a deal that was worth around USD 2 billion with Malaysian state-owned oil and gas company Petronas. This ongoing negotiation was for Tata Power’s proposed renewable energy infrastructure investment trust (InvIT). Petronas was supposed to come as an chor investors of Tata Power's InvIT for clean energy.
The report stated that both parties were in the advanced stage of negotiations when Tata Power decided to back out.
As part of the listing plans, the company is planning to make the renewable business of Tata Power an umbrella entity.
Last year, Tata Power Renewable Energy Limited (TPREL), the Company’s wholly-owned subsidiary had initiated a move to raise funds to support its clean energy platform.