Financial Insights

BlackRock led team to invest Rs 4,000 crore in Tata Power’s subsidiary

BlackRock, the largest asset manager in the world, along with Mubadala is leading a Rs 4,000 crore investment in Tata Power Renewable Energy Ltd. (TPREL).

BlackRock and Mubadala Investment Company of the UAE will jointly hold 10% in TPREL and assis one of the largest conglomerate venture into the field of clean energy. After conversion, the holding will range around 9.5-11%.

This deal values TPREL at Rs 40,000 crores, less than half the market cap of Tata Power standing strong around Rs 87,000 crores. The Tata Power Board has agreed to transferring all it’s renewable energy businesses under TPREL.

The company will consist of five units – utility scale solar, wind and hybrid generation assets; solar cell and module manufacturing; engineering, procurement and construction (EPC) contracting; rooftop solar infrastructure; and solar pumps and electric vehicle charging infrastructure.

“BlackRock Real Assets, together with Mubadala, shall invest Rs 4,000 crore (~US$ 525 million) by way of equity / compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore. The final shareholding will range from 9.76% to 11.43% on final conversion”, the statement from Tata Power read.

The TPREL is aiming for a portfolio exceeding 20 Gigawatts of renewable assets within the next five years from their present portfolio of 4.9 Gw.

Highlight by Aman Agarwal.

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