Tata Power raises Rs 40 billion to fund growth of its renewable energy business

Tata Power Company Limited and BlackRock Real Assets-led consortium, including Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power’s renewable energy (RE) subsidiary, Tata Power Renewable Energy Limited (TPREL).

BlackRock Real Assets and Mubadala will invest Rs 40 billion by way of equity/compulsorily convertible instruments for a 10.53 per cent stake in TPREL, translating to a base equity valuation of Rs 340 billion. The final shareholding will range from 9.76 per cent to 11.43 per cent on final conversion. The first round of capital infusion is expected to be completed by June 2022 and the balance funds will be infused by the end of 2022. The investment is expected to fund TPREL’s growth plans.Over the next five years, TPREL aims to achievea portfolio of over 20 GW RE assets and a market-leading position in the rooftop and electric vehicle charging space across India.