Resurgent Power Ventures investors weigh stake sale

ICICI Venture and foreign investors who jointly own nearly three-fourths of Resurgent Power Ventures are planning to sell their stakes in the Tata Power-backed platform, two people aware of the development said.

- Ranjani Raghavan & Nehal Chaliawala

While Tata Power owns 26% of the Singapore-based company with assets worth $2.5 billion, the rest is owned by ICICI Venture, Kuwait Investment Authority, and Oman Investment Authority.

"The shareholders have met investment banks to arrange a sale," one of the two people said on the condition of anonymity, adding a formal mandate is awaiting approval from Tata Power parent Tata Sons.

Resurgent Power focuses on acquiring and turning around conventional and hydroelectric projects as well as transmission assets that are operational, nearing operations, or in advanced stages of development. Established with an initial investment of $850 million in 2016, the company has acquired three projects via bankruptcy courts so far.

Tata Power, ICICI Venture, ICICI Bank, Oman Investment Authority and Kuwait Investment Authority did not respond to requests for comment sent on Monday.

It is not clear if the mandate for sale will include a 74% stake sale or a full 100% stake sale. However, the second person cited above said Tata Power is not selling its stake currently.