Tata Power Renewable Approves Sale of 200 Million Shares to GreenForest

The share sale marks the completion of ₹40 billion investment by GreenForest


Tata Power Renewable Energy (TPREL), a fully owned subsidiary of Tata Power, has approved the allotment of 200 million compulsorily convertible preference shares to GreenForest New Energies. The shares have a face value of ₹100 (~$1.2) each at par, amounting to a total of ₹20 billion (~$242.4 million).

The share sale completes the two investment tranches of ₹20 billion (~$242.4 million) million) each in TPREL by GreenForest.

GreenForest is a joint investment vehicle of BlackRock Real Assets and Mubadala Investment Company owned by the Abu Dhabi government.

Last August, TPREL had approved the allotment of 83.6 million equity shares with a face value of ₹10 (~$0.12) each at a price of ₹239.22 (~$3) per share, including a premium of ₹229.22 (~$2.8). This aggregated to a total of ₹20 billion (~$242.4 million).

BlackRock and Mubadala entered a binding pact to invest in Tata Power Renewable Energy. While BlackRock and Mubadala were to invest ₹40 billion (~$484.7 million) in equity in two equal tranches for a 10.53% stake in TPREL, the final shareholding would range from 9.76% to 11.43% on final conversion.

GreenForest’s investment includes a diverse portfolio of assets including businesses in utility-scale solar, wind, and hydro power generation, solar cell and module manufacturing, rooftop solar infrastructure, solar pumps and electric vehicle charging infrastructure.

The Competition Commission of India approved the acquisition of an 11.43% stake in TPREL by GreenForest last July.

TPREL was declared the winner in Tata Power Delhi Distribution’s auction for 255 MW wind-solar hybrid power projects. The company quoted a price of ₹3 (~$0.037)/kWh, according to Mercom sources.

Mercom’s India Solar Market Leaderboard 1H 2022 ranks Tata Power Renewables second for the highest number of solar installations in 1H 2022, accounting for 10% of the total market share.

Tata Power Renewables was one of the winners in Maharashtra State Electricity Distribution Company’s auction to procure 500 MW of power on a long-term basis from Phase IX of grid-connected intrastate solar projects.

Last September, the company announced it would set up a 100 MW captive solar project for stainless steel manufacturer Viraj Profile at Tarapur in Maharashtra.