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Tata Power Renewable Energy Limited (TPREL)has received the second and final round of investment of ₹2,000 crore from GreenForest New Energies Bidco Limited (GreenForest).
Tata Power has successfully allotted 20 crores 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 April 14, 2022 between Tata Power, TPREL and BlackRock Real Assets-led consortium, including Mubadala Investment Company (Mubadala) within the targeted timelines.
GreenForest holds 6.06 per cent equity in TPREL and on the conversion of the above CCPS, will hold a 9.76 per cent to 11.43 per cent equity stake in TPREL, subject to the equity valuation on final conversion.
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 ($525 million) worth of 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 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 per cent new capacity added over the past four years.
The 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. This will also contribute to the government’s decarbonisation ambition, as well as support the macro energy transition trends in the country.
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