Private power player from India Tata Power Company Ltd has decided to bring all of its renewable energy businesses under one umbrella of Tata Power Renewable Energy Limited and has raised INR 40 billion ($525 million) from BlackRock Real Assets and Mubadala Investment Company.
With this investment, US based investment manager BlackRock and Abu Dhabi government owned holding company Mubadala will own 10.53% stake in Tata Power Renewables, but the final shareholding will range from 9.76% to 11.43% on final conversion.
Tata Power Renewables will comprise Tata Power’s utility scale solar, wind, hybrid generation assets, solar cell and module manufacturing, EPC contracting, rooftop solar infrastructure, solar pumps & electric vehicle (EV) charging infrastructure. Altogether, the company currently stands at close to 4.9 GW of renewable energy assets.
With this fresh investment coming in, Tata Power Renewables will aggressively expand its portfolio to over 20 GW renewable assets over the next 5 years. It aims to also reach a market leading position in the rooftop and EV charging infrastructure.
“I am delighted to welcome BlackRock 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,” said Tata Power Company Limited’s CEO and Managing Director Dr Praveer Sinha.
Tranche I of the capital infusion is to be completed by June 2022, and balance to come in by the end of calendar year 2022.