Tata Power announces completion of Rs.4000 crore capital infusion
Biznextindia : Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited and one of India’s top renewable energy companies, has successfully received the second and final round of investment worth ₹2,000 crore from GreenForest New Energies Bidco Limited (GreenForest). TPREL has allotted 20,00,00,000 Compulsorily Convertible Preference Shares (CCPS) at a face value of ₹100 each to GreenForest on a preferential basis, totaling ₹2,000 crore. With this investment, TPREL has now received a total of ₹4,000 crore under the binding agreement signed on 14th April 2022 between Tata Power, TPREL, and a consortium led by BlackRock Real Assets, which includes Mubadala Investment Company, within the agreed-upon timelines. GreenForest currently holds a 6.06% equity stake in TPREL, and upon conversion of the CCPS, its equity stake in TPREL will increase to between 9.76% and 11.43%, depending on the final equity valuation upon conversion.
The equity infusion will fund India’s most comprehensive, renewal energy platform, consisting of five distinct businesses delivering long-term, customer-oriented solutions. TPREL houses 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 completion of this equity infusion will fund TPREL’s aggressive growth plans. Over the next five years, it aims to achieve a portfolio of over 20 GW of renewables assets and a market leading position.
“Tata Power Renewables with its broad and deep portfolio of next-generation renewables businesses is well poised to further solidify its position as an industry leader. The completion of ₹ 4,000 crore (~US$ 525 million) worth capital infusion into our renewables business will fuel the next level of growth and help us play a pivotal role in India’s efforts to secure greater energy stability through low carbon solutions for a sustainable future.” said Dr Praveer Sinha, CEO and MD, Tata Power.
India is one of the world’s largest renewable energy markets and has recorded the fastest growing renewable energy supply with over 60% new capacity added over the past four years. Its installed renewables capacity is expected to grow from 175 GW currently to 500 GW by 2030, to satisfy India’s local energy demand driven by GDP growth and contribute to the government’s decarbonization ambition, as well as support the macro energy transition trends in the country