The Tata group’s power unit announced that it had raised Rs 4,000 crore from BlackRock and Mubadala to scale its renewable energy business. The investor group will receive a 10.53 per cent stake in Tata Power Renewable Energy for the money invested in equity and compulsorily convertible securities, Tata Power said. The company has also signed a binding agreement with Blackrock to invest in the subsidiary at Rs 34,000 crore. The objective was to create a comprehensive energy platform.

After conversion, the investors’ total stake would range from 9.76 per cent to 11.433 per cent, valuing the company between Rs 35,000 and Rs 41,000 crore. The newly created energy platform would have five distinct verticals: Utility-scale solar, wind and hybrid generation assets; solar cell and module manufacturing; engineering, procurement and construction (EPC) contracting; rooftop solar infrastructure; and solar pumps and electric vehicle charging infrastructure.

Tata Power has earlier said it plans to phase out coal-based capacity and expand its clean and green capacity to 80 per cent by FY30. The renewable energy sector has witnessed increased activity in recent years as energy companies in India and worldwide seek to capitalise on the industry amid the shift from fossil fuel-based energy sources to clean energy. While the Tata-Power-BlackRock deal is among the top ten transactions in the sector, the most significant value so far is that of Adani Green’s acquisition of SB Energy India in 2021 for over Rs 26,000 crore.