BlackRock is set to invest a sum of Rs 3,000 crore in exchange for a minority stake in Aditya Birla Renewables, according to a statement on Monday.
The renewable energy arm of Aditya Birla, and a unit of group company Grasim has been valued at Rs 14,600 crore.
Global Infrastructure Partners, a part of BlackRock, has pledged Rs 2,000 crore, and the investment offers a greenshoe option to invest another Rs 1,000 crore, according to the statement.
Till now, ABR has grown organically, and has built a diversified portfolio across solar, hybrid, floating solar, round-the-clock renewable power of 4.3 GW across 10 states, it said.
“The scale of the renewables opportunity in India is extraordinary, driven both by the urgent imperative of decarbonisation, and the sheer arithmetic of demand. This business sits squarely at the intersection of national energy security and climate leadership, two defining priorities for the coming decades,” Aditya Birla Group chairman Kumar Mangalam Birla said.
He further stated that the company is targeting over double its capacity to 10 GW in the years to come.
The group sees the renewables business emerging as a powerful growth engine, Birla said.
“GIP’s experience in infrastructure across the globe, combined with Aditya Birla’s technical, operational and industrial capabilities, aims to develop Aditya Birla Renewables into a leading renewable platform that can contribute to the Indian industry’s decarbonization objective,” the company’s president and chief operating officer Raj Rao said.
(With PTI inputs)
