Tata Power Renewable Energy Limited has raised 4,000 crore to expand its renewable energy portfolio and develop India’s most comprehensive renewable energy platform.
Also, according to a corporate release, Tata Power and a consortium led by BlackRock Real Assets, which includes Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy Limited.
“BlackRock Real Assets and Mubadala will invest ₹4,000 crore by way of equity/compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of ₹34,000 crore,” the statement added.
On conversion, the total shareholding will range from 9.76 percent to 11.43 percent.
Five diverse businesses will make up the newly formed platform. However, all of which will be providing long-term, customer-focused solutions.
Moreover, it will house Tata Power’s entire renewable energy portfolio. Including utility-scale solar, wind, and hybrid generation assets, solar cell and module manufacturing. Engineering, procurement, and construction (EPC) contracting, rooftop solar infrastructure, solar pumps, and electric vehicle charging infrastructure.
The diverse asset portfolio guarantees a diverse yet predictable revenue stream. Which includes 25-year fixed-price PPAs for grid-connected utility scale projects.
Also, Tata Power Renewables has roughly 4.9 GW of renewable energy assets in its vertically integrated operations. Its aggressive growth plans are intended to be financed by the planned investment.
Therefore, Tata Power Renewables plans to build a portfolio of over 20 GW of renewable energy assets. And a market-leading presence in the rooftop and electric vehicle charging area across the country over the next five years.