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
According to the official press release, BlackRock Real Assets and Mubadala would invest Rs 4,000 crore by way of equity and compulsorily convertible instruments for a 10.53 per cent stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore.
It added that the final shareholding would range from 9.76 per cent to 11.43 per cent on final conversion.
“This newly-created platform will consist of five distinct businesses delivering long-term and customer oriented solutions. It will house all renewable energy businesses of Tata Power,” said the press release.
It added that the broad-based portfolio of assets ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid-connected utility-scale projects.
Tata Power Renewables at present has about 4.9 GW of renewable energy assets. Over the next five years, the company;s renewable energy arm 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.
“The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades,” said Praveer Sinha, CEO and managing director, Tata Power.
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.
“We are pleased to invest alongside Tata Power in this well-diversified and vertically integrated renewables business,” said Anne Valentine Andrews, BlackRock’s global head of Real Assets.
Moelis & Company is the financial advisor to Tata Power, while JP Morgan is the financial advisor to BlackRock Real Assets.
“We are proud to show our ongoing commitment to India with this investment and look forward to working with Tata Power to capitalize on the growth opportunities ahead,” said Khaled Abdulla Al Qubaisi, Chief Executive Officer, Real Estate and Infrastructure Investments at Mubadala.
Cyril Amarchand Mangaldas & Co are legal advisors to Tata Power while Slaughter & May and AZB Partners are legal advisors to BlackRock Real Assets.
