Tata Power eyes ₹6,000 crore from asset sales

Tata Power expects to rake in ₹6,000 crore from the sale of some its assets in an effort to bring down its debt.

In September 2019, Tata Power had debt of ₹44,900 crore, which was more or less the same as in 2018. While debt can be an important tool in businesses, particularly capital-heavy ones such as power, industry watchers say the high level of cash reserves to go with the debt makes the company less risky to invest in. Tata Power has ₹22,600 crore in cash reserves.

Also, over the past three years, Tata Power has produced a sturdy free cash flow amounting to 61 per cent of its EBIT, which means it has enough cash to pare its debt.