Tata Power Co., controlled by India’s largest conglomerate Tata Group, is weighing an initial public offering for its renewable energy business that could raise about 35 billion rupees ($473 million), according to people familiar with the matter.
The power company has abandoned earlier plans to seek a partner to invest in its green assets via an investment trust, the people said, asking not to be identified as the information is private. Tata Power will seek approval for the IPO plan from its board, they said. If they approve, the proposed listing in Mumbai could take place as soon as this year, one of the people said.
Deliberations are ongoing and details such as the size and timing could change, the people said. A representative for Tata Power couldn’t immediately comment.
Tata Power’s plan to list its green power business comes as India’s renewables sector is forecast to expand rapidly, driven by increasing power demand and decarbonization efforts. The country is working to meet Prime Minister Narendra Modi’s target to multiply its renewable power capacity almost five times over the next decade.