Blackrock-led group to invest ₹4,000 cr in Tata Power's energy unit
Premium- The final shareholding will range from 9.76% to 11.43% on final conversion, Tata Power said in a statement
Looking to scale up its renewable energy portfolio, the Tata Power Renewable Energy Limited has raised ₹4,000 crore to create India's most comprehensive renewable energy platform.
Tata Power and BlackRock Real Assets-led consortium, including Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy Limited, a company statement said.
“BlackRock Real Assets and Mubadala will invest ₹4,000 crore by way of equity/compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of ₹34,000 crore," the statement added.
The final shareholding will range from 9.76% to 11.43% on final conversion.
The newly-created platform will consist of five distinct businesses delivering long-term, customer oriented solutions.
It will house all renewable energy businesses of Tata Power including those in: Utility Scale Solar, Wind & Hybrid Generation assets; Solar Cell & Module Manufacturing; Engineering, Procurement and Construction (EPC) contracting; Rooftop Solar infrastructure; Solar Pumps and Electric Vehicle Charging infrastructure.
The broad-based portfolio of assets ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid connected utility scale projects.
Tata Power Renewables' vertically integrated operations currently have approximately 4.9 GW of renewable energy assets.
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The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans.
Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20 GW of renewables assets and a market leading position in the rooftop and electric vehicle charging space across the country.