Tata Power is in talks with large pension and sovereign asset managers, including Canada Pension Plan Invest Board (CPPIB) and Government of Singapore Investment (GIC), to raise at least $500 million ahead of the proposed IPO for its renewable energy unit.
Following the buzz, shares of Tata Power rallied 15 per cent to Rs 255.5 on Monday.
According to earlier ET reports, some bulge-bracket funds from the US and sovereign funds from the Middle East are also exploring investments in Tata Power Renewables.
Tata Power is understood to be working with Moelis & Co. to run a formal process to find a buyer, the report said. The company has also explored the option of setting up a renewable energy infrastructure investment trust (InvIT) with its operational power assets.
