InvestorQ : Why does Tata Power not want to merge its solar subsidiary?
sarah Leo made post

Why does Tata Power not want to merge its solar subsidiary?

Answer
image
Rashi Mehra answered.
1 month ago
Follow

Tata Power, which had originally sought to merge Tata Power Solar Systems with itself, is now changing its plans. Now, Tata Power will seek fresh shareholder approval to amend the scheme of arrangement. Under the new scheme, Tata Power Solar System will not merger into Tata Power. Instead, it will remain an independent subsidiary of Tata Power. This will require the approval of the shareholders, since the old scheme is already approved.

Tata Power will now keep its solar arm as an independent subsidiary in the light of the spate of favourable policies announced by the government. These include fiscal incentives, import concessions etc to promote and encourage solar manufacturing in India. In that context, Tata Power believes it would be beneficial to shareholders if Tata Power Solar is kept independent for better valuations.

0 Views