Tata Power Company and a 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.
BlackRock Real Assets, together with Mubadala, will invest Rs 4,000 crore by way of equity or compulsorily convertible instruments for a 10.53 per cent stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore. The final shareholding will range from 9.76 per cent to 11.43 per cent on final conversion.
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. 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 said.
Tata Power Renewables’ vertically integrated operations currently have approximately 4.9 GW of renewable energy assets.
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.