BlackRock Real Assets, together with Mubadala, will invest Rs 4,000 crore, i.e. US$ 525 million, for a 10.53 per cent stake in Tata Power Renewables.
The Tata Power and BlackRock Real Assets-led consortium, including Abu Dhabi based Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy Limited.
BlackRock Real Assets, together with Mubadala, will invest Rs 4,000 crore, i.e. US$ 525 million, by way of equity or compulsorily convertible instruments for a 10.53 per cent stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore.
According to the company, the final shareholding will range from 9.76 per cent to 11.43 per cent on final conversion.
The first round of capital infusion is expected to be completed by June 2022, and the balance funds will be infused by the end of the calendar year 2022.
This newly created platform will consist of 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 said.
Tata Power Renewables is one of the largest renewable energy companies in India. Its vertically integrated operations currently have approximately 4.9 GW of renewable energy assets.
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 India.
“India is one of the world’s largest renewable energy markets and has recorded the fastest growing renewable energy supply with over 60 per cent new capacity added over the past four years. Its installed renewable capacity is expected to grow from 150 GW currently to 500GW by 2030,” the company added.