The lenders of Prayagraj Power Generation Company (PPGCL), a 3X660MW coal-based power project based in UP have issued a Letter of Intent to Resurgent Power Ventures, (Resurgent Power) for acquisition of 75.01% stake in PPGCL.

Resurgent Power is a Joint Venture based out of Singapore and is held 26% by Tata Power through its wholly owned Singapore based subsidiary. The balance 74% of Resurgent Power is held by ICICI Bank and investors of international repute.

Praveer Sinha, CEO & MD, Tata Power, said, ''It's our endeavor to maximize shareholder value through growth & sound investments. After our due diligence, we found that Prayagraj Power fits in our overall scheme of growth. It has all approvals and clearances in place along with long-term PPA and fuel supply agreement. It will be a value-adding asset in Resurgent Power's portfolio.''

Shares of the company gained Rs 1.4, or 1.87%, to trade at Rs 76.10. The total volume of shares traded was 200,087 at the BSE (12.40 p.m., Wednesday).