BlackRock, Mubadala close 1st-tranche investment in Tata Power Renewables

Image by Tata Power Solar (www.tatapowersolar.com)

August 19 (Renewables Now) - BlackRock Real Assets and Abu Dhabi’s Mubadala Investment Company have completed the first tranche of their planned INR-40-billion (USD 502.4m/EUR 493.6m) investment in the renewable energy arm of India’s Tata Power Co Ltd (BOM:500400).

The Indian utility said in a statement that the board of directors of Tata Power Renewable Energy Ltd has approved the allotment of 83.6 million equity shares at INR 239.22 apiece to UK-based GreenForest New Energies Bidco Ltd, which is owned by the two investors. This concludes Tranche 1 of the transaction that was first announced in April.

The infusion of an additional INR 20 billion as part of Tranche 2 will be completed in accordance with the terms of the deal, says the latest bourse filing by Tata Power. According to the prior information, the second tranche will involve the issuance of compulsory convertible preference shares at INR 100 apiece.

The initial announcement mentioned that BlackRock Real Assets and Mubadala will get a combined 10.53% stake in Tata Power Renewables in exchange for their investment. At the time, it was calculated that the whole transaction implied a base equity valuation for the renewable energy business of INR 340 billion or USD 4.27 billion at the current exchange rate.

Tata Power said in April that this investment will allow it to create “India’s most comprehensive renewable energy platform.” It will accommodate all of the company’s renewable energy activities, including utility-scale solar; wind and hybrid generation; solar cell and module manufacturing; engineering, procurement and construction (EPC) contracting; rooftop solar infrastructure; solar pumps and electric vehicle (EV) charging infrastructure.

Back then, Tata Power Renewables had some 4.9 GW of assets. The platform’s goal is to top 20 GW of renewables over the next five years.

(INR 10 = USD 0.126/EUR 0.123)

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