Tata Power sells Defence business to Tata Advance Systems to prune debt

Sale will garner enterprise value of Rs 1,076 cr as upfront payment; was completed as per a 'Scheme of Arrangement' approved by NCLT

Tata Power 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