Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company, has received the second and final round of ₹2,000 crore investment from GreenForest New Energies Bidco Limited (GreenForest). The company has allotted 20 crore compulsorily convertible preference shares (CCPS) at face value of ₹100 each at par totalling ₹2,000 crore on a preferential basis to GreenForest.
Following this tranche, TPREL has 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). GreenForest holds 6.06% stake in TPREL and on conversion of the CCPS it will hold 9.76% to 11.43% equity stake in TPREL, subject to the equity valuation on final conversion.
“The completion of ₹4,000 crore ($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.” said Tata Power
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.
In April 2022, Tata Power Renewable Energy had inked a binding agreement, under which GreenForest would invest ₹4,000 crore by way of equity and compulsorily convertible instruments for a 10.53% stake in the Tata Group firm.
The installed renewables capacity in India, one of the world’s largest renewable energy markets, is expected to grow from 175 GW currently to 500 GW by 2030.