The proposed investment is designed to fund Tata Power Renewables’ aggressive growth plans
The proposed investment is designed to fund Tata Power Renewables’ aggressive growth plans
Tata Power Company Ltd. and the 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 will invest £4,000m (US$525m) in equity/forced convertible instruments with Mubadala for a 10.53% stake in Tata Power Renewables, representing a base valuation of £34,000m” , the company said in a file with exchanges.
“The final stake in the final conversion will be between 9.76% and 11.43%,” it said.
This newly created platform will consist of five different companies offering long-term, customer-centric solutions.
It will house all of Tata Power’s renewable energy businesses, including the following: utility-scale solar, wind and hybrid generation assets; Manufacture of solar cells and modules; Engineering, Procurement and Construction (EPC) Contracting; solar infrastructure on the roof; Solar pumps and charging infrastructure for electric vehicles.
The diversified asset portfolio ensures diversified yet stable revenue streams, including 25-year fixed-price PPAs for grid-connected utility 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 designed to fund Tata Power Renewables’ aggressive growth plans. In the next five years, Tata Power Renewables aims to achieve a renewable energy portfolio of over 20GW and a market-leading position in rooftop and EV charging stations across India, the company said.
“Tata Power Renewables is an industry leader with a broad and deep portfolio of next-generation renewable energy companies well positioned for rapid growth due to their strong and consistent performance over the years,” Praveer Sinha, CEO and MD, Tata Power Company Ltd. , called. “The collaboration will help us pursue exciting opportunities that lie ahead in the decades to come.”
The first round of capital infusion is expected to be completed by June 2022 and the remaining funds will be infused by the end of calendar 2022, the company said.
