Shares of Tata Power today rose by over 3 per cent as the company is selling its 5 per cent stake in PT Kaltim Prima Coal for about USD 250 million to cut its debt.
Tata Power's scrip ended 3.59 per cent higher at Rs 111.05 on the BSE. During the day, it surged 3.96 per cent to Rs 111.45.
At the NSE, the stock settled at Rs 110.85, up 3.45 per cent from its previous close.
The stock was the top gainer among the 30-bluechips on Sensex.
"Tata Power, facing under recovery and cash flow challenges due to its Mundra UMPP operations has signed options agreements to sell 5 per cent stake in PT Kaltim Prima Coal to get additional cash as well as to reduce its consolidated debt," the company said in a BSE filing on Friday.
The company will sell its stake to Indonesian coal firm Bakrie Group entity.
Post stake sale, Tata Power's share PT Kaltim Prima Coal (KPC) will come down to 25 per cent.
