Tata Power’s liquidation of non-core assets to gain steam: Report
The liquidation of Tata Power’s non-core assets is expected to pick up pace during H2 of FY20 leading to a partial repayment of non-core debt.
The monetisation of non-core assets is also set to spur an earnings growth of 28 per cent CAGR (compounded annual growth rate) over FY20-21 with an underlying Ebitda (earnings before interest, taxes depreciation and amortisation) of Rs 10,000 crore growing at five per cent CAGR, a research report by ICICI Securities said.
For Tata Power, paring non-core debt is its core focus. As per the estimates of ICICI Securities, out of the the company’s total debt of Rs 48,900 crore, Rs 11,500 crore is categorised as non-core relating to funding losses of Coastal Gujarat Power Ltd (CGPL), the special purpose vehicle formed for the now distressed 4,000-Mw ultra mega power plant (UMPP) at Mundra and also the premium paid for Welspun acquisition.
