Tata Power announces completion of Rs 4,000cr capital infusion into TPREL

Tata Power said that its subsidiary Tata Power Renewable Energy Limited (TPREL) has secured the second and final round of investment of INR 2,000 crores from GreenForest New Energies Bidco Limited. (GreenForest) and has

Following the investment, Tata Power Renewable Energy has allotted 20,00,00,000 compulsorily convertible preference shares (CCPS) at a face value of INR 100 each on a preferential basis to GreenForest New Energies.

Following the second tranche, Tata Power Renewable Energy has bagged INR 4,000 crores in investment in accordance with the binding agreement that was signed in April 2022 between the company, Tata Power, and BlackRock Real Assets’ consortium that includes Mubadala Investment Company.

GreenForest New Energies has a 6.06% stake in Tata Power Renewable Energy, and upon conversion of the CCPS, will have a 9.76-11.43% stake, which will be subject to equity valuation at the time of conversion.

Tata Power said that the cash infusion will be used to fund Tata Power Renewable Energy’s renewal energy technology platform comprising five distinct businesses that provide long-term, customer-focused solutions.

Tata Power announces completion of Rs 4,000cr capital infusion into Tata Power Renewable Energy. Photo courtesy of Ameyajkamat/Wikimedia Commons.

The Tata Group company has bundled all its renewable energy operations into Tata Power Renewable Energy. These include those in the wind and hybrid generation assets, utility-scale solar, engineering, procurement and construction (EPC) contracting, solar cell and module manufacturing, rooftop solar infrastructure, solar pumps, and electric vehicle (EV) charging infrastructure.

The finalization of the equity infusion will be used to fund Tata Power Renewable Energy’s growth plans. In the next five years, the company will aim to build an array of more than 20GW of renewable assets.

Dr Praveer Sinha — Tata Power CEO and MD said: “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 Rs 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.”