Tata Power shares gained as much as 4 percent in morning trade Tuesday as the company is expected to dilute its stake in Indian Energy Exchange through initial public offering.
The company is one of shareholders of Indian Energy Exchange that has filed draft red herring prospectus with capital markets regulator SEBI to float an IPO.
Existing shareholders including Tata Power Company, private equity arm of Aditya Birla Group, Madison India Capital and Renuka Ramnath-led Multiples Alternate Asset Management will sell 60.65 lakh shares in the company via IPO.
Besides, AF Holdings, Kiran Vyapar Ltd, Golden Oak (Mauritius) Ltd and IEX's former chief executive Jayant Deo, will also offload shares in the public issue, according to the draft red herring prospectus (DRHP).
Established in 2008, IEX is India's first power exchange providing automated trading platform for electricity (for physical delivery) and renewable energy certificates.
Axis Capital, Kotak Mahindra Capital Company and IIFL Holdings will manage the company's public issue. The shares are proposed to be listed on the BSE and National Stock Exchange (NSE).
At 10:05 hours IST, the stock price was quoting at Rs 80.85, up Rs 2.85, or 3.65 percent on the BSE.
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