BlackRock-Led Consortium To Invest Rs 4,000 Crore In Tata Power For 10.53 Per Cent Stake

Tata Power in its stock exchange filing said this deal translates to a base equity valuation of Rs 34,000 crore for the company

Tata Power Renewables is targeting a portfolio of over 20 Gw of renewables assets over the next five years, from 4.9 Gw. Image: Getty

New Delhi: Tata Power Renewable Energy on Thursday said that a consortium, led by BlackRock Real Assets, including Mubadala Investment Company, will invest Rs 4,000 crore for a 10.53 per cent stake in the company.

Tata Power in its stock exchange filing said this deal translates to a base equity valuation of Rs 34,000 crore for the company.

According to the news report, the first round of investment is expected to be completed by June, while the second by the end of 2022.

The BlackRock Real Assets will invest Rs 4,000 crore in two equal tranches of Rs 2,000 crore each. Tranche 1 through equity and Tranche 2 through convertible securities, after 6 months.

The final shareholding will range from 9.76 per cent to 11.43 per cent after final conversion.

This investment will fund Tata Power Renewable Energy's aggressive growth plans in the rooftop and electric vehicle charging space in India.

Tata Power Renewables is targeting a portfolio of over 20 gigawatts (Gw) of renewables assets over the next five years, from 4.9 Gw currently, the company said in a regulatory filing.

The company is one of the largest renewable energy firms in India. Its vertically integrated operations currently have about 4.9 Gw of renewable energy assets.

“The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans. Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20 GW of renewables assets and a market leading position in the rooftop and electric vehicle charging space across India," said Tata Power.