The completion of this equity infusion will fund Tata Power Renewable Energy (TPREL)'s aggressive growth plans.
TPREL, one of India's largest integrated renewable energy companies and a subsidiary of Tata Power, has received the second and final round of investment of Rs 2,000 crore from GreenForest New Energies Bidco (GreenForest). TPREL has successfully allotted 20,00,00,000 Compulsorily Convertible Preference Shares (CCPS) at face value of Rs 100 each at par aggregating to Rs 2,000 crore on a preferential basis to GreenForest.Subsequent to this second tranche, TPREL has now received Rs 4,000 crore of investment pursuant to the binding agreement signed on 14th April 2022 between Tata Power, TPREL and BlackRock Real Assets-led consortium, including Mubadala Investment Company (Mubadala) within the targeted timelines. GreenForest holds 6.06% equity in TPREL and on conversion of the above CCPS, will hold 9.76% to 11.43% equity stake in TPREL, subject to the equity valuation on final conversion.
TPREL houses all renewable energy businesses of Tata Power 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.
"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 (~$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 Dr Praveer Sinha, CEO and MD, Tata Power.
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Tata Power Company is engaged in the business of the company is generation, transmission and distribution of electricity.
The company's consolidated net profit soared 121.9% to Rs 945.02 crore in Q3 FY23 as against Rs 425.81 crore in Q3 FY22. Net sales jumped 29.5% to Rs 14,129.12 crore during the quarter as against Rs 10,913.14 crore in corresponding quarter last year.
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