The first phase of BlackRock Real Assets and Mubadala Investment Company’s anticipated INR-40 billion (USD 502.4 million/EUR 493.6 million) investment in Tata Power Co Ltd.’s renewable energy division has been completed.
The allocation of 83.6 million equity shares to UK-based GreenForest New Energies Bidco Ltd, which is controlled by the two investors, at a price of INR 239.22 per share, has been approved by the board of directors of Tata Power Renewable Energy Ltd, the Indian utility said in a statement.
This completes Tranche 1 of the deal, which was initially revealed in April.
According to Tata Power’s most recent market filing, the infusion of an extra INR 20 billion as part of Tranche 2 will be performed in accordance with the provisions of the agreement.
The second tranche will comprise the issuing of mandatory convertible preference shares at a price of INR 100 per share, according to earlier information.
The initial release said that in exchange for their investment, BlackRock Real Assets and Mubadala would receive a combined 10.53% share in Tata Power Renewables.
At the time, the basic equity valuation for the renewable energy sector was estimated to be INR 340 billion, or USD 4.27 billion at the current exchange rate.
According to a statement from Tata Power in April, this investment will enable the company to build “India’s most comprehensive renewable energy platform.”
In addition to utility-scale solar, wind, and hybrid production, solar cell and module manufacturing, engineering, procurement, and construction (EPC) contracting, rooftop solar infrastructure, solar pumps, and EV charging infrastructure will all be permitted to operate there.
Tata Power Renewables has around 4.9 GW of assets at that time. Over the following five years, the platform wants to reach 20 GW of renewable energy.