BlackRock-led consortium to invest Rs 4,000 cr in Tata Power Renewables

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said on Thursday that a Real Assets-led consortium, including Mubadala Investment Company, would invest Rs 4,000 crore for a 10.53% stake in the company’s renewable energy unit. This translates to a base equity valuation of Rs 34,000 crore for Renewables, the company said in a stock exchange filing.


The first round of investment is expected to be completed by June and the rest by the end of 2022. The final shareholding will range from 9.76% to 11.43% on final conversion.





The BLK SPV will invest Rs 4,000 crore in two equal tranches of Rs 2,000 crore each: Tranche 1 through equity and Tranche 2 through convertible securities, after 6 months.


The investment is expected to fund Renewable Energy’s aggressive growth plans in the rooftop and electric vehicle charging space in India.


Tata Power Renewables is targeting a portfolio of over 20 gigawatts (GW) of renewables assets over the next five years, from 4.9 GW currently, Tata Power said in a regulatory filing.


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 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,” said Tata Power.


Praveer Sinha, CEO and Managing Director, Tata Power Company Limited commented: “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. I am delighted to welcome 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.”


Anne Valentine Andrews, BlackRock’s Global Head of Real Assets, said: “We are pleased to invest alongside Tata Power in this well diversified and vertically integrated renewables business. With one of the largest portfolios of solar and wind assets in the country and a very experienced management team, Tata Power Renewables is at the forefront of India’s ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future. India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals.”

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