Tata Power Renewable Energy’s raising of ₹4,000 crore from BlackRock Real Assets-led consortium has given the deal a better valuation in this space of similar nature, claimed Praveer Sinha, CEO and Managing Director, Tata Power Company.
BlackRock Real Assets, together with Mubadala, are to invest ₹4,000 crore by way of equity/compulsorily convertible instruments for a 10.53 percent stake in Tata Power Renewables, translating to a base equity valuation of ₹34,000 crore. One board seat will be offered to the consortium, informed Tata Power.
“Compared to anyone in the country, because this is a large platform, we (got) many more times than what other similar deals (have managed); considering the fact that most of the deals have been in utility scale business while we are offering the largest platform, not only for utility scale but for roof tops, solar farms, EV (electric vehicles),” said Sinha talking to the media over a conference call post announcement of the deal.
Sinha compared the present transaction to the deals that took place in the last six months to one year in the renewable energy space.
Last week, Abu Dhabi-based International Holding Company PJSC (IHC) said it will invest $2 billion as primary capital in three Adani group companies – Adani Green Energy, Adani Transmission and Adani Enterprises, through the preferential allotment route.
Tata Power hopes to get the first tranche of funds, ₹2,000 crore in 6-8 weeks, and a similar amount in six months thereafter. . These funds will be enough for setting up 3-4 GW capacity in the next two years.
Over the next five years, the company aims to achieve a portfolio of over 20 GW of renewables assets and a market-leading position in the rooftop and electric vehicle charging space. Given the pace at which the market is growing and the fast-changing dynamics of the industry, Tata Power may revisit its investment strategy.
“Based on the present projection, we should achieve the 20GW capacity, but huge changes are happening in the renewable space and if there is something very attractive, we will revisit our strategy,” Sinha added.