Tata Power Plans to Raise ₹2,000 Crore via Bond Sale for Debt Refinancing and Renewables

Tata Power is entering the bond market with a ₹2,000 crore issue, marking its return after over 2 years, as per The Economic Times report. The funds will support debt refinancing, investment in renewable energy, and general corporate activities. 

Details of Tata Power's ₹2,000 Crore Bond Issue 

Tata Power Co Ltd will raise ₹2,000 crore through a bond issue comprising 2 tranches of non-convertible debentures. Both tranches will raise ₹1,000 crore each, targeting 3-year and 5-year maturities. The 3-year bond, maturing on December 19, 2028, is likely to offer an interest rate of 7.05%, while the 5-year bond, due on December 19, 2030, is expected to carry a 7.25% rate. 

The issuance is scheduled for December 19, 2025. Financial institutions such as mutual funds, banks, and insurance companies are expected to subscribe to the offering. ICICI Bank and Yes Bank are acting as arrangers, each taking ₹300 crore from the offering. The remaining ₹1,400 crore is allocated for other investors. 

Purpose of the Funding 

The capital generated through this bond issue will be utilised for three primary purposes: refinancing of its existing debt, investment in renewable energy projects, and for general corporate requirements.  

This structured approach aligns with the company’s goal of strengthening its financial position and expanding its presence in the energy sector. 

Read More: Tata Power Aims to Finalise ₹6,500 Crore Wafer-Ingot Project by January, Says CEO Praveer Sinha! 

Current Operational Footprint and Expansion 

Tata Power currently operates 4.55 GW of solar cell and module manufacturing capacity. This includes 4.3 GW in Tirunelveli, Tamil Nadu and an additional 250 MW in Bengaluru.  

Additionally, the company is in the process of developing a 10 GW ingots and wafers manufacturing facility in Odisha. These components are integral to the production of solar panels and semiconductor materials used in various applications. 

Tata Power Share Price Performance  

As of December 18, 2025, at 9:16 AM, Tata Power share price on NSE was trading at ₹376.25 down by 0.61% from the previous closing price. 

Conclusion 

Tata Power is raising ₹2,000 crore via bonds to manage debt obligations, scale renewable assets, and handle its operating requirements. This marks a return to the bond market after a gap of over 2 years, supported by strong institutional interest and credit ratings. 

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