India's largest private sector power producer Tata Power Co Ltd has entered into a binding agreement to acquire NELCO 's defence business of Unattended Ground Sensors (UGS) on a slump sale basis for about Rs 8.3 crore (approximately $1.3 million), as per a stock market disclosure.
The UGS business, which involves supply, installation and servicing of sensors for the Ministry of Defence, will be housed in Tata Power's strategic engineering division (SED)— a supplier of defence equipment and solutions—once the deal is completed.
“Acquisition of the UGS business will provide synergies to the existing business of Tata Power SED and has scope for growth and expansion,” Tata Power said in the filing.
Last month, Tata Power agreed to acquire 100 per cent stake in Ideal Energy Projects that owns a 540 MW of thermal power project in Nagpur district of Maharashtra for an undisclosed amount.
With this acquisition, the total generating capacity of Tata Power will increase to 8,885 MW, taking the company an inch closer to reach its target of 18,000 MW by 2022.
Shares of Tata Power were trading at Rs 86.85 a piece, down 1.03 per cent at 11:37 AM on the BSE in a weak Mumbai market.
(Edited by Joby Puthuparampil Johnson)