Tata Power is in the limelight today morning following an interview by The Hindu BusinessLine with Praveer Sinha, CEO and MD, Tata Power who said that it is looking to scale down its international business by selling off its non-core assets and looks to double down in India as he sees an upsurge in demand for power business in India.
The company said that it plans to sell assets should bring in Rs.2,000-2,500 crore, which will be used to pare debt and fund growth plans in India. In this plan, it wants to move out of Zambia, South Africa and Georgia. And sale of these assets is expected bring down the debt to equity ratio.
Its gross debt currently stands at Rs.48,506 crore and its debt equity ratio has reduced from 2.5 to 2.2. Its aim is to bring it down below 2 in the next 12 months.
This news has not really given much of a fillip to the stock price, which briefly rose around 1.5% to Rs.67.95 but it is traded currently at Rs.66.70, down some 0.5%. Its 52-week low is at Rs.59.90.