Tata Power mulling $473 million renewable energy unit IPO

The power company has abandoned earlier plans to seek a partner to invest in its green assets via an

, the people said, asking not to be identified as the information is private. Tata Power will seek approval for the IPO plan from its board, they said. If they approve, the proposed listing in Mumbai could take place as soon as this year, one of the people said.

Deliberations are ongoing and details such as the size and timing could change, the people said. A representative for Tata Power couldn’t immediately comment.

Tata Power’s plan to list its green power business comes as India’s renewables sector is forecast to expand rapidly, driven by increasing power demand and decarbonization efforts. The country is working to meet Prime Minister Narendra Modi’s target to multiply its renewable power capacity almost five times over the next decade.

The company, including subsidiaries and joint entities, has generating capacity of 12.8 gigawatts, about 30% of which comes from clean energy, according to its website. Its projects include solar power generation, installation, manufacturing and maintenance, as well as wind power generation.

India’s largest renewable energy producer, ReNew Power, agreed to merge with a U.S. special purpose acquisition company in February, giving it an $8 billion enterprise value.