The Competition Commission of India (CCI) on Tuesday approved stake acquisition in Tata Power-backed renewable energy subsidiary, Tata Power Renewable Energy by BlackRock Real Assets-led consortium, including Mubadala Investment Company (“Mubadala”). In April this year, Tata Power entered into an agreement where Blackrock and Mubadala will pump in ₹4,000 crore for a 10.53% stake in Tata Power Renewables. Tata Power plans to utilise the funds for the growth of its renewable energy business.
CCI through its Twitter account said, “Commission approves acquisition of a stake in Tata Power Renewable Energy Limited indirectly by BlackRock and Mubadala.”
On BSE, Tata Power shares closed at ₹226.15 apiece down by ₹6.35 or 2.73%. Its market cap is around ₹72,262.60 crore.
On Tuesday, Tata Power posted a 103.2% rise in its consolidated net profit at ₹794.60 crore in the April-June 2022 quarter, mainly on the back of higher revenues. Consolidated revenue from operations increased 43% to ₹14,495.48 crore in Q1FY23 against a revenue of ₹10,132 crore during the corresponding period last year.
As of June 30, 2022, the total renewable capacity of Tata Power is 5,524 MW, with an installed capacity of 3,634 MW and 1,890 MW under various stages of implementation.
Under the agreement, BlackRock Real Assets, together with Mubadala, will invest ₹4,000 crore ($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 ₹34,000 crore. The final shareholding will range from 9.76% to 11.43% on final conversion.
In a statement on April 14, Tata Power said, the proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans. Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20 GW of renewables assets and a market-leading position in the rooftop and electric vehicle charging space across India.
Tata Power Renewables is one of the largest renewable energy companies in India. Its vertically integrated operations currently have approximately 4.9 GW of renewable energy assets.
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 150 GW currently to 500GW by 2030, Tata Power said in the statement.
