Stock Report

Resurgent Power Ventures Pte Ltd awarded LOI by resolution professional of South East UP Power Transmission Company Ltd

Posted On : 2022-03-09 14:50:29( TIMEZONE : IST )

The resolution professional of South East UP Power Transmission Company Limited (SEUPTCL) has issued a Letter of Intent (LOI) selecting Resurgent Power Ventures Pte Limited (Resurgent Power) as a successful resolution applicant under IBC proceedings. The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process.

SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited (UPPTCL) on 11th September 2009, to implement and operate the specified intra-state transmission system for a period of 35 years under public-private partnership model on Build-Own-Operate-Maintain & Transfer (BOOT) basis.

SEUPTCL has approx. 1,500 Kms. of Transmission Line and is divided into two groups. The Group-1 consists of 6 Nos. of Transmission Element totaling 582 Kms. of Transmission Lines (765 KV & 400 KV) and 2 Nos. of 400 KV Substation with a combined capacity of 1,630 MVA and the Group-2 comprises 8 Nos of Transmission Element totaling 953 Kms. of Transmission Lines (765 KV & 400 KV) and 3 Nos. of 400 KV Substation with a combined capacity of 4,100 MVA.

Resurgent Power will invest equity and raise debt in SEUPTCL at a total enterprise value of more than ₹ 6,000/- crore to implement and commission the elements timely and turnaround the asset that will maximize value for all the stakeholders.
Speaking on the development, Dr. Praveer Sinha, CEO & MD, Tata Power said "Tata Power partnering with investors in Resurgent Power had bid for acquiring SEUPTCL and is delighted to have been selected as the successful bidder by the Resolution Professional for acquiring the project under IBC proceedings. This asset will bring significant value to our transmission business and diversify the Resurgent Power portfolio after the successful turnaround of the 1,980 MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in Northern Region NRSS XXXVI Transmission Limited."

Resurgent Power is a Joint Venture based out of Singapore and is held 26% by Tata Power through its wholly-owned Singapore-based subsidiary viz. Tata Power International Pte Limited. The balance 74% of Resurgent Power is held by ICICI Bank Limited and investors of international repute.

The transaction shall be subject to customary approvals and conditions under IBC proceedings.

Shares of Tata Power Company Limited was last trading in BSE at Rs. 227.00 as compared to the previous close of Rs. 216.25. The total number of shares traded during the day was 4815651 in over 43178 trades.

The stock hit an intraday high of Rs. 227.80 and intraday low of 215.00. The net turnover during the day was Rs. 1081529083.00.