BlackRock-Mubadala consortium to invest Rs4,000 cr in Tata Power Renewable

Buy-out fund BlackRock Real Assets, together with UAE sovereign wealth fund Mubadala Investment Company, will invest Rs4,000 crore (about $525 million), for a 10.53 per cent stake in Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy Limited.

The BlackRock Real Assets-Mubadala consortium has entered into a binding agreement with Tata Power to invest $525 million, by way of equity or compulsorily convertible instruments, for a 10.53 per cent stake in Tata Power Renewable.
The investment takes Tata Power Renewable’s base equity valuation to Rs34,000 crore, while the final shareholding of the equity funds will range from 9.76 per cent to 11.43 per cent on conversion.
The first round of capital infusion into Tata Power Renewables is expected to be completed by June and the rest by the end of the year, the companies said in a joint statement on Thursday. The Tata Power Renewables platform will house all clean energy-related businesses of parent Tata Power Co Ltd, including those in utility-scale solar; wind and hybrid generation assets; solar cell and module manufacturing; engineering, procurement and construction contracting; rooftop solar infrastructure; solar pumps and electric vehicle charging infrastructure, the companies said.
“I am delighted to welcome BlackRock Real Assets and 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," Praveer Sinha, CEO and managing director of Tata Power Co., said in the statement.
“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," BlackRock’s global head of real assets, Anne Valentine Andrews, said in the statement.
With around 4.9 gigawatts (GW) of renewable energy assets, Tata Power Renewables ranks among India’s largest clean energy firms. It plans to grow its portfolio to 20GW.
At the COP26 summit in November last year, Prime Minister Narendra Modi pledged to meet 50% of India’s energy requirements from renewable energy by 2030, cut India’s carbon emission by 1 billion tonnes by 2030 and achieve net-zero carbon emissions by 2070.