Mubadala and other Abu Dhabi government entities have taken investment positions in some of India's major blue-chips. Image Credit: Supplied

Dubai: A consortium of investors that includes Mubadala will invest in Indian conglomerate Tata Power’s renewable energy subsidiary. The consortium, led by BlackRock Real Assets, will invest $525 million as equity and convertible investments for a 10.53 stake in Tata Power Renewables.

The final shareholding will range from 9.76 per cent to 11.43 per cent on final conversion. Tata Power Renewables is one of the largest in its category in India. Its vertically integrated operations has around 4.9 GW of renewable energy assets.

The newly created platform will consist of five businesses ‘delivering long-term, customer orientated solutions’. It will bring in all renewable energy businesses of Tata Power, including those in: utility scale solar, wind and hybrid generation assets; solar cell and module manufacturing; engineering, procurement and construction (EPC) contracting; rooftop solar infrastructure; solar pumps and electric vehicle charging infrastructure.

The portfolio of assets ‘ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid connected utility scale projects’. The move comes as India prepares to transition its energy needs to renewables over the next decade and more.

The country recorded the 'fastest growing renewable energy supply with over 60 per cent new capacity added in four years. Its installed renewables capacity is expected to grow from 150 GW to 500 GW by 2030.

Funding starts from June
The first round of capital infusion could be completed by June and the balance funds will be infused by end of this year.

Moelis & Company is the financial advisor to Tata Power, while JP Morgan is the financial advisor to BlackRock Real Assets. Cyril Amarchand Mangaldas & Co. are legal advisors to Tata Power while Slaughter & May and AZB Partners are legal advisors to BlackRock Real Assets.

"As a responsible investor, Mubadala is focused on renewable energy in multiple markets," said Khaled Abdulla Al Qubaisi, CEO, Real Estate and Infrastructure Investments at Mubadala. "So we are delighted to invest in Tata Power Renewables to support energy transition efforts in India in partnership with Blackrock Real Assets. We are proud to show our ongoing commitment to India with this investment and look forward to working with Tata Power to capitalize on the growth opportunities ahead."

Tata Power Renewables has one big mandate
Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20GW of renewables assets and a 'market leading position in the rooftop and electric vehicle charging space across India'.

"Tata Power Renewables is an industry leader with a broad and deep portfolio of next-generation renewables businesses well placed to scale up rapidly based on its strong and consistent performance over the years," said Dr. Praveer Sinha, CEO and Managing Director, Tata Power Company.