DFC Board Approves $425 Mn Financing For Tata Power's Tamil Nadu Plant, Shares Rally

Shares of large cap Tata Group stock Tata Power gained 1.15% in morning trade after the U.S. International Development Finance Corporation's (DFC) Board of Directors approved the provision of up to USD 425 million in financing in TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL), for its upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli district in Tamil Nadu, India. DFC is America's development finance institution, according to the regulatory filing.

Tata Power Renewable Energy Limited (TPREL) is a subsidiary of Tata Power, one of India's largest integrated power companies.

The plant's first module production is expected by the year end and the first cell production is expected in the first quarter of FY24, added the Tata Power's BSE filing.
Pending a U.S. congressional notification, this investment will support India's ambitious program to increase renewable energy manufacturing capability to support domestic solar capacity addition as part of its global green energy transition. DFC's financial support of Tata Power will help secure the supply chain in the country's journey for leadership in clean energy space.

Commenting on the latest development Dr Praveer Sinha, CEO & MD, Tata Power said, "We appreciate DFC's assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power's ability to set up a state-of-the-art manufacturing supply line in the country. This will go a long way in supporting the renewable and clean energy transition in the country."

Tata Power Stock Performance & Return: Last trading price of Tata Power share is Rs 272.00 per share with intraday gain of 1.15%. Its 52-week high price is Rs 276.50 per share and 52-week low price is Rs 182.45 apiece, respectively. The company has a market capitalisation of Rs 86,769.45 crore. Tata Power stock gained 23% in last 3-months, soared 28% YTD, offered 12% return in last 1-year, and rallied 105% in last 2-years. Tata Power shares jumped 379% in last 3-years.

About U.S. International Development Finance Corporation (DFC): The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.

About Tata Power Renewable Energy Limited ("TPREL"): It is a subsidiary of The Tata Power Company Limited and is one of the country's most significant renewable energy players. TPREL is a developer of renewable energy projects (including solar, wind, hybrid, round-the-clock (RTC), peak, floating solar, and storage systems including battery storage) that it owns, operates, and maintains. It also offers comprehensive green energy solutions for rural and urban areas like turnkey, EPC and O&M solutions for various business segments like utility-scale projects, solar rooftop, and solar pump systems.