Tata Power receives a Rs 40 billion investment from BlackRock, Mubadala

Tata Power has entered into a contractual agreement with a consortium led by BlackRock Real Assets, which includes Mubadala Investment Company, to invest in Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power. BlackRock Real Assets and Mubadala would invest Rs 40 billion for a 10.53 per cent stake in TPREL in the form of equity / compulsorily convertible instruments, corresponding to a base equity valuation of Rs 340 billion. On conversion, the total shareholding will range from 9.76 per cent to 11.43 per cent.

According to the reports, the first round of capital infusion is projected to be finished by June 2022, with the balance funds infused by the end of calendar year 2022.  Furthermore, the new platform will include five renewable energy-related businesses that will provide long-term and consumer oriented solutions. This platform will house all of Tata Power’s renewable energy assets, including 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.

Earlier this month, TPREL commissioned a 300 MW project in Dholera, Gujarat. According to the company, it is the largest single-axis solar tracker system in India. Annually, the project will generate 774 MUs of electricity. It will also lower carbon emissions by roughly 704,340 MT per year. A total of 873,012 monocrystalline PV modules have been used for this project.

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