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Tata Power Renewable Energy issues over 8.36 cr shares to BlackRock-Mubadala consort for 2,000 cr

GreenForest is a consortium led by BlackRock Real Assets along with Mubadala Investment Company. (Mint)Premium
GreenForest is a consortium led by BlackRock Real Assets along with Mubadala Investment Company. (Mint)

  • This marks the completion of the first tranche of the agreement signed between Tata Power's renewable energy arm and GreenFrost. The transaction is part of an investment deal worth 4,000 crore which BlackRock and Mubadala will infuse into Tata Power Renewable Energy.

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Tata Group-backed electric utility company, Tata Power on Thursday announced the Board of Directors of the subsidiary, Tata Power Renewable Energy approved allotment of 8,36,05,049 equity shares on a preferential basis aggregating nearly 2,000 crore to GreenForest New Energies Bidco, a Company incorporated under the laws of England and Wales. This marks the completion of the first tranche of the agreement signed between Tata Power's renewable energy arm and GreenFrost. The transaction is part of an investment deal worth 4,000 crore which BlackRock and Mubadala will infuse into Tata Power Renewable Energy.

As per the regulatory filing, Tata Power Renewable Energy issued the preferential shares at 239.22 per equity share having a face value of 10 each.

Tata Power said, " This completes Tranche 1 of the transaction. Tranche 2 infusions of 2,000 crore will be concluded in accordance with the terms of the agreements."

On April 14 this year, Tata Power Renewable Energy inked a binding agreement with GreenForest.

Under the agreement, GreenForest will pump in 4,000 crore in Tata Power Renewable Energy by way of equity and compulsorily convertible instruments for a 10.53% stake in the latter. 

GreenForest is a consortium led by BlackRock Real Assets along with Mubadala Investment Company.

Both BlackRock and Mubadala-led consortium investment will translate to a base equity valuation of 34,000 crore for Tata Power's subsidiary. The final shareholding will range from 9.76% to 11.43% on final conversion.

Now, only the second tranche is left for the completion of the transaction. Under the second tranche, Tata Power Renewable Energy will issue 20 crore compulsory convertible preference shares to GreenFrost at 100 per share to be converted at a price to be determined based on actual FY23 performance.

With this investment, Tata Power plans 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.

Tata Power Renewables is one of the largest renewable energy companies in India. Its vertically integrated operations currently have approximately 4.9 GW of renewable energy assets.

On BSE, Tata Power shares closed at 238 apiece up 0.34%. The company's market valuation is around 76,049.08 crore.

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