Tata Power raises Rs 4,000 crore to fund growth of its renewable energy business

As per the company, the newly created platform will consist of five distinct businesses delivering long-term, customer oriented solutions.
Tata Power CEO Praveer Sinha. ( File Photo)
Tata Power CEO Praveer Sinha. ( File Photo)

NEW DELHI: Tata Power on Thursday said that its renewable energy arm has raised Rs 4,000 crore from two foreign investment firms~BlackRock and Mubadala to fund the growth of its renewable energy business in India. BlackRock Real Assets, together with Mubadala will invest Rs 4,000 crore by way of equity for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore. The final shareholding will range from 9.76 % to 11.43% on final conversion.

“The Tata Power Company. 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,” said the company in a statement.

As per the company, 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 and Module Manufacturing; Engineering, Procurement and Construction (EPC) contracting; Rooftop Solar infrastructure; Solar Pumps and Electric Vehicle Charging infrastructure.

“I am delighted to welcome BlackRock Real Assets & Mubadala to join us to take the renewables business to the next level of growth. The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades,” said Dr. Praveer Sinha, CEO and Managing Director of Tata Power Company Limited.

Anne Valentine Andrews, BlackRock’s Global Head of Real Assets said India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals. The company said 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 calendar year 2022.

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