Company Ltd has sold its defence business to Tata Advanced Systems
Ltd, a wholly-owned subsidiary of Tata Sons. The sale will garner an enterprise value of Rs 1,076 crore as upfront payment. Tata Power
in a statement said the sale of defence business is part of the company’s ongoing strategic plan to monetize its non-core assets and reduce overall leverage.
The sale was completed as per a ‘Scheme of Arrangement’, which was approved by National Company Law Tribunal (NCLT) at Mumbai and Hyderabad in December 2019 and March 2020 respectively, said the company.
“Sale of defence business is in line with our commitment to divest non-core assets & businesses. The sale proceeds will help the company to reduce leverage and increase focus in the core business areas like renewable generation, distribution and new service-led businesses which will bring greater value for our shareholders,” said Praveer Sinha, CEO & Managing Director, Tata Power.
Strategic Engineering Division (SED) is a non-core defence electronics division of Tata Power, engaged in business of indigenous design, development, production, integration, supply and life cycle support of mission critical defence systems.