The stock was trading down 5.81 per cent to Rs 98.10.
The decision to pull out at this advanced stage was conveyed last week after both sides were in the final stages of negotiating a binding term sheet.
The Indian conglomerate has gone back to the drawing board to explore an IPO for the business to capitalise on the frenzied interest of investors for green energy companies around the world, across public and private markets.
As part of the listing plans, Tata Power is likely to create an umbrella entity that will house its operational and pipeline IPP projects along with its micro grid, roof top solar panels and EV charging stations operations.
The sudden U turn has surprised many group watchers. The Tata Power stock had appreciated 285 per cent (almost 3x) in the last 1 year in anticipation of this transaction. Following Petronas, a clutch of other institutional and financial investors were also to come on board as part of a consortium in future.
“Both sides were focussed on finalising the binding agreement,” said a person involved on condition of anonymity. “It was at that point it was relayed that the board was hesitant to proceed any further since it felt better valuations can be achieved through an IPO. The surge in the Adani Green stock, ReNew Power SPAC listing has really made everyone excited to tap the capital markets.”
