BlackRock and Mubadala’s Acquisition of 11.43% Stake in Tata Power Renewables Approved

Listen to this article

The Competition Commission of India (CCI) has approved the acquisition of an 11.43% stake in Tata Power Renewable Energy by Greenforest New Energies Bidco.

Greenforest New Energies is an investment vehicle indirectly incorporated by BlackRock Alternatives Management and the Abu Dhabi government’s investment vehicle, Mubadala Investment Company PJSC (MIC), for undertaking the proposed combination.

Tata Power Renewable Energy (TPREL) is a wholly owned subsidiary of Tata Power, through which Tata Power undertakes its renewable energy business in India. TPREL’s primary business is power generation through renewable energy sources.

In April, BlackRock Real Assets and Mubadala Investment Company entered into a binding agreement to invest in TPREL. BlackRock and Mubadala will invest ₹40 billion (~$525 million) in equity or compulsorily convertible instruments for a 10.53% stake in TPREL.

Tata Power has planned to spend over ₹750 billion (~$9.46 billion) in the next five years on renewables. The company is looking to scale its generation capacity to over 30 GW by the financial year 2027 from the current 13.5 GW. It aims to increase its clean energy portfolio from 34% to 80% by 2030.

Tata Power Solar was one of the top utility-scale solar EPC service providers in 2021, according to Mercom’s  India Solar Market Leaderboard 2022. Tata Power Solar accounted for 9% of the market share.

Globally, total corporate funding (including venture capital funding, public market, and debt financing) in the first half (1H) of 2022 stood at $12 billion, 11% lower than the $13.5 billion raised in 1H 2021. In 1H 2022, there were 53 solar M&A transactions compared to 54 transactions in 1H 2021.

Tata Power had recorded revenue of ₹120.85 billion (~$1.56 billion) in the fourth quarter (Q4) ending March 2022, a YoY increase surge of 16% from ₹103.79 billion (~$1.34 billion) in the same quarter of the previous fiscal year. The company’s profit after tax in Q4 went up 76% to ₹7.75 billion (~$100.67 million) from ₹4.4 billion (~$57.15 million) in the corresponding quarter of the previous year.