Tata Power may sell cross-holdings after Mundra tariff order

It holds stakes in seven listed companies of the group, including Nelco, Tata Communications, Volta

Tata Power would consider selling non-core assets to support the Mundra plant following a Supreme Court ruling against compensatory power tariffs, it told investors on Monday. 

The non-core assets included cross-holdings at the Tata group level, the company added. Tata Power holds stakes in seven listed companies of the group, including Nelco, Tata Communications and Voltas. It also has a stake in the unlisted Tata Teleservices. 

Analysts said Tata Power’s valuation per share reflected Rs 12-15 invested in the telecom business and Rs 6-7 invested in the other businesses. 

At current valuations, Tata Power’s stakes in the listed group companies