Private sector utility Tata Power said that a consortium led by BlackRock Real Assets had purchased 10.53 percent of the former’s renewable energy unit for Rs 4000 crore. Tata Power stated in a statement that the revenues of the sale will be used to fuel the company’s renewable energy business’s expansion.
BlackRock Real Assets-led consortium, including Mubadala Investment Company, has entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy” it said.
“BlackRock Real Assets, together with Mubadala, shall invest Rs 4,000 crore by way of equity / compulsorily convertible instruments for a 10.53 percent stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore,” the company said.
On final conversion, however, the total ownership will range from 9.76 percent to 11.43 percent.
“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,” it added.
Tata Power’s renewable energy operations, including utility-scale solar, wind, and hybrid generating assets, solar cell and module manufacturing, EPC contracting, rooftop solar infrastructure, solar pumps, and electric vehicle charging infrastructure, will be housed on this newly established platform. The diverse asset portfolio guarantees a diverse yet predictable income stream, which includes 25-year fixed-price PPAs for grid-connected utility-size projects. Tata Power Renewables has roughly 4.9 GW of renewable energy assets in its vertically integrated operations.
