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Looking to scale up its renewable energy portfolio, the Tata Power Renewable Energy Limited has raised 4,000 crore to create India's most comprehensive renewable energy platform.

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

“BlackRock Real Assets and Mubadala will invest 4,000 crore by way of equity/compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of 34,000 crore," the statement added. 

The final shareholding will range from 9.76% to 11.43% on final conversion.

The newly-created platform will consist of five distinct businesses delivering long-term, customer oriented solutions. 

It will house all renewable energy businesses of Tata Power including those in: Utility Scale Solar, Wind & Hybrid Generation assets; Solar Cell & Module Manufacturing; Engineering, Procurement and Construction (EPC) contracting; Rooftop Solar infrastructure; Solar Pumps and Electric Vehicle Charging infrastructure. 

The broad-based portfolio of assets ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid connected utility scale projects.

“With one of the largest portfolios of solar and wind assets in the country and a very experienced management team, Tata Power Renewables is at the forefront of India’s ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future. India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals," BlackRock’s global head of real assets Anne Valentine Andrews added in the statement.

“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 Mubadala’ Real Estate and Infrastructure Investments CEO Khaled Abdulla Al Qubaisi in the statement.

“Moelis & Company is the financial advisor to Tata Power, while JP Morgan is the financial advisor to BlackRock Real Assets. Cyril Amarchand Mangaldas & Co are legal advisors to Tata Power while Slaughter & May and AZB Partners are legal advisors to BlackRock Real Assets," the statement said.

Tata Power Renewables' vertically integrated operations currently have approximately 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 the country.

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