Welspun Enterprises shares surged nearly 11 per cent on Monday after Tata Power signed an agreement to buy the renewable energy business of Welspun group for an undisclosed amount.
“Welspun Energy Private Limited has signed a SPA with Tata Power Renewable Energy for divestment of its subsidiary Welspun Renewable Energy Private Limited,” Welspun Enterprises said in a release to Bombay Stock Exchange on Monday.
Welspun Enterprises holds 15.49 per cent stake in Welspun Energy. Welspun Renewable Energy is a subsidiary of Welspun Energy.
Tata Power Renewable Energy is a 100 per cent subsidiary of Tata Power Company.
Although the financial details of the deal was not available, market sources said that the deal size could be in the range of Rs 6,000 crore to Rs 7,000 crore. (Read)
Welspun Renewable Energy has around 1,140 MW of renewable projects comprising about 990 MW solar power projects and about 150 MW wind power projects.
Out of 1,140 MW renewable energy portfolio, nearly 1,000 MW of capacity is operational and the balance capacity is under advanced stages of implementation.
As of 9.54 a.m., Welspun Enterprises shares traded 3.1 per cent higher at Rs 63.25 while Tata Power shares were down 0.52 per cent at Rs 75.8. In comparison the broader Nifty was down 1.06 per cent.