Tata Power completes financial restructuring of Coastal Gujarat Power Limited

Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of Tata Power, has announced that it has repaid ₹ 1,550 crore of bank loans on 2nd December 2020.

With this repayment and the earlier repayment of ₹ 2,600 crore of bank loans made in October 2020, the entire bank loans of CGPL aggregating to ₹ 4,150 crore have been fully repaid. After this repayment, CGPL's long term debt comprises only ₹ 3,790 crore of bonds and debentures.

This action is in line with the Company's stated objective of repaying debt in CGPL to reduce the periodic debt servicing obligations of CGPL and thus make its operations more self-sustainable. With this repayment, CGPL will now be less reliant on parent company support and will make the Mundra operations sustainable. Meanwhile, the merger of CGPL with the parent company has made good progress. These steps are part of the overall restructuring of Tata Power group to prepare itself for the next stage of growth.

Shares of TATA POWER CO.LTD. was last trading in BSE at Rs.71.65 as compared to the previous close of Rs. 69.2. The total number of shares traded during the day was 4811985 in over 13856 trades.

The stock hit an intraday high of Rs. 73.6 and intraday low of 69.4. The net turnover during the day was Rs. 345513548.

Source : Equity Bulls

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