Tata Power Renewable Energy announces completion of capital infusion worth Rs 4,000 crore

Tata Power's subsidiary, Tata Power Renewable Energy (TPREL), has said that it has received the second and final round of investment worth Rs 2,000 crore from GreenForest New Energies Bidco (GreenForest). Following that, it has allotted 20,00,00,000 Compulsorily Convertible Preference Shares (CCPS) at a face value of Rs 100 each at par aggregating to Rs 2,000 crore on a preferential basis to GreenForest. 

In the second and the final round, TPREL has received Rs 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) within the targeted timelines. This equity infusion will fund India's most comprehensive, renewal energy platform, consisting of five distinct businesses delivering long-term, customer-oriented solutions, the company claimed. 

GreenForest holds 6.06 per cent equity in TPREL, and on conversion of the above CCPS, will now hold 9.76 per cent to 11.43 per cent equity stake in TPREL, subject to the equity valuation on final conversion. 

TPREL is the nodal firm for all renewable energy businesses of Tata Power Company Limited, including those in utility scale solar, wind & hybrid generation assets, solar cell & module manufacturing; engineering, procurement and construction (EPC) contracting; rooftop solar infrastructure; solar pumps and electric vehicle charging infrastructure.  

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, as per the company.

“Tata Power Renewables with its broad and deep portfolio of next-generation renewable businesses is well poised to further solidify its position as an industry leader. The completion of Rs 4,000 crore 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 Praveer Sinha, CEO and MD, Tata Power. 

On Tuesday, Tata Power, in a regulatory filing, had said that the board of its arm Tata Power Renewable Energy has approved allotment of 20 crore preference shares worth Rs 2,000 crore to GreenForest New Energies Bidco. 

“Board of Directors of Tata Power Renewable Energy Ltd, a subsidiary of the company, today approved the allotment of 20,00,00,000 Compulsorily Convertible Preference Shares at face value of Rs 100 each at par aggregating to Rs 2,000 crore on a preferential basis to GreenForest New Energies Bidco Ltd (GreenForest), a Company incorporated under the laws of England and Wales,” a BSE filing said. 

Earlier, Sinha said Tata Power aims to operationalise its solar cell and module facility, which is being set up in Tamil Nadu by December this year. In July 2022, Tata Power inked a pact with the Tamil Nadu government to invest Rs 3,000 crore for setting up a new facility to manufacture solar cells and modules in Tirunelveli district of the state. As per the Memorandum of Understanding (MoU) with the Tamil Nadu government, Tata Power company has to set up a greenfield 4GW solar cell and 4GW solar module manufacturing plant in the southern state.  

Besides this, the company is waiting for regulatory approval and clearance from the regulatory commission for the purchase of power for the 225 MW hybrid project in Karnataka.

In December 2022, TPREL had received a letter of award (LoA) from Tata Power Delhi Distribution Ltd (TPDDL) to set up the wind and solar hybrid power project in Karnataka.