Tata Power Company Limited has informed the Exchange about update on acquisition
TATAPOWER · price
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Tata Power has completed the first tranche of its planned acquisition of a 40% equity stake in Khorlochhu Hydro Power Limited (KHPL), investing ₹120 crore by subscribing to 1.2 crore equity shares of ₹100 each. The total investment is expected to be around ₹830 crore, with the remaining tranches to be made over the next five years. KHPL is developing a 600 MW hydropower project in Bhutan with an estimated project cost of approximately ₹6,900 crore. Post-acquisition, KHPL will become an associate company of Tata Power, supporting its clean and green energy transition goals. The acquisition was done via cash consideration and does not require any Indian regulatory approvals.
This is a positive development for shareholders as it strengthens Tata Power's renewable energy portfolio through a strategic hydropower asset in Bhutan. The staggered investment over five years limits cash outflow impact, while aligning with the company's clean energy expansion plans.