Tata Power, India's largest integrated power company, announced that its Board has approved the sale of its Defense business to Tata Advance Systems, a wholly owned subsidiary of Tata Sons at an enterprise value of Rs 22.30 billion (out of which Rs 10.40 billion payable at the time of closing and Rs 11.90 billion payable on achieving certain milestones), subject to Government & other approvals.

This is as part of the company's plan to monetize its non-core assets and improve the balance sheet. This will be subject to Shareholders approval.

Anil Sardana, CEO & Managing Director, Tata Power said, ''SED is a non-core business division of Tata Power. The Company has been working on charting its next phase of growth, for which monetization of non-core assets is a critical step. This sale will also help in reduction of leverage.''

Shares of the company declined Rs 0.65, or 0.81%, to settle at  Rs 79.35.  The total volume of shares traded  was  311,940 at the BSE (Wednesday).