Can you tell me about the Blackrock stake in Tata Power Renewables?

Tata Power has been aggressively looking to expand and scale up its renewables business, which is currently housed under its subsidiary Tata Power Renewable Energy Ltd. To scale up its renewable energy portfolio, the renewable energy arm of Tata Power has already raised Rs.4,000 crore to create India's most comprehensive renewable energy platform. The agreement has already been signed between Tata Power and Blackrock of the US.

Incidentally, Blackrock is the largest passive manager in the world with AUM of over $11 trillion. Apart from Blackrock Real Assets, Mubadala Investment Company of the Middle East, will also be a member of the consortium. Blackrock and Mubadala jointly plan to invest a sum of Rs.4,000 crore via equity and via convertibles to gain a 10.53% stake in Tata Power Renewables. This translates into a valuation of Rs.34,000 crore for renewable business.

The renewable business of Tata Power will comprise of five segments which include Solar, Wind & Hybrid Generation assets; Solar Cell & Module Manufacturing; EPC contracting; Rooftop Solar; Electric Vehicle Charging infrastructure. These five items will combine to create the renewables portfolio of Tata Power. This will mark one of the largest portfolios of solar and wind assets in India with a high quality team to back it up.

Moelis & Company acted as the financial advisor to Tata Power while JP Morgan was the financial advisor to BlackRock Real Assets. Tata Power currently has about 4.9 GW of renewable energy assets. The fund infusion will catalyse the growth of the renewables portfolio with the Tatas. Tata Power will need these funds to enhance its renewable portfolio by about four-fold to 20 GW. This also gives Tata Power a dominant position in the rooftop and EV charging space.