BlackRock led consortium invests US$525m in Tata Power Renewables to support Indian operations

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Tata Power Renewables is targeting 20GW of renewable assets in India by 2027. Image: Tata Power

A consortium led by private equity giant BlackRock Real Assets has acquired a 10.53% stake in Tata Power Renewables through a INR4,000 crore (US$525 million) investment.

The investment will be used to fund Tata Power Renewables’ growth plans in India. Over the next five years, it intends to develop a portfolio of over 20GW of renewables assets and a “market leading position in the rooftop and electric vehicle charging space”, the company said in a media release.

BlackRock, alongside Abu Dhabi-based investment goliath Mubadala, will invest the INR4,000 crore by way of equity and compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of INR34,000 crore (US$4.46 billion). The final shareholding will range from 9.76% to 11.43% on final conversion, Tata Power said.

The first round of capital infusion is expected to be completed by June this year and the balance funds will be infused by end of calendar year 2022.

“We are pleased to invest alongside Tata Power in this well diversified and vertically integrated renewables business,” said Anne Valentine Andrews, BlackRock’s global head of Real Assets.

“With a proven track record of green and clean energy generation and an experienced management team, Tata Power is one of India’s largest integrated power companies and is well positioned to support the country’s energy independence and transition,” said Khaled Abdulla Al Qubaisi, CEO of real estate and infrastructure investments at Mubadala.

Tata Power Renewables currently has 4.9GW of operational renewables energy assets in India. It recently commissioned a 160MW solar project in the north-western Indian state of Rajasthan and a 300MW solar project in Gujarat.

Tata Power has been a feature of India’s solar scene for many years, having nearly 2.5GW of solar PV online in the countrty and operating at both ends of the value chain.

In February, it stated its aim to take advantage of India’s production linked incentive (PLI) scheme and other policy mechanisms as it sets up new cell and module manufacturing capacity in the country.

Ashish Khanna, president at Tata Power Renewables, told PV Tech Premium said that he sees a “bright future” for solar manufacturing in India, with the company exploring various sites and states for its new production plant.

Moelis & Company was the financial advisor to Tata Power, while JP Morgan was the financial advisor to BlackRock Real Assets. Cyril Amarchand Mangaldas & Co were legal advisors to Tata Power while Slaughter & May and AZB Partners were legal advisors to BlackRock Real Assets.

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