Wednesday, March 1, 2023

Rs 4,000 Crore (US$ 525 Million) Worth Capital Infusion Into Tata Power Renewable Energy Limited Gets Completed


- Investment to fund the growth of India’s most comprehensive renewable energy platform set up by the Company in 2022

Tata Power Renewable Energy Limited (TPREL), one of India’s largest integrated renewable energy companies and a subsidiary of The Tata Power Company Limited (Tata Power), has received the second and final round of investment of ? 2,000 crore from GreenForest New Energies Bidco Limited (GreenForest) and has successfully allotted 20,00,00,000 Compulsorily Convertible Preference Shares (CCPS) at face value of ? 100 each at par aggregating to ? 2,000 crore on a preferential basis to GreenForest.

Subsequent to this second tranche, TPREL has now received ? 4,000 crore of investment pursuant to the binding agreement signed on 14th April 2022 between Tata Power, TPREL and BlackRock Real Assets-led consortium, including Mubadala Investment Company (Mubadala) within the targeted timelines. GreenForest holds 6.06% equity in TPREL and on conversion of the above CCPS, will hold 9.76% to 11.43% equity stake in TPREL, subject to the equity valuation on final conversion.

The equity infusion will fund India 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.  

Tata Power 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.

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