The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans
The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans
Tata Power Company Ltd. 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 Ltd., Tata Power said in a statement.
“BlackRock Real Assets, together with Mubadala, shall invest ₹4,000 crore ($525 million) 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 company said in a filing with exchanges.
“The final shareholding will range from 9.76% to 11.43% on final conversion,” it said.
This 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 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, the company said.
“Tata Power Renewables is an industry leader with a broad and deep portfolio of next-generation renewables businesses well placed to scale up rapidly based on its strong and consistent performance over the years,” Praveer Sinha, CEO and MD, Tata Power Company Ltd., said. “The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades.”
The first round of capital infusion is expected to be completed by June 2022 and the balance funds will be infused by end of calendar year 2022, the company said.
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