Global Infrastructure Partners (GIP), part of BlackRock, is set to invest INR 3,000 crore for a minority stake in Aditya Birla Renewables, a commercial and industrial (C&I)-focused renewable energy platform under the Aditya Birla Group, with a pan-India portfolio of 4.3 GW.
GIP has committed INR 2,000 crore as part of the transaction, along with an additional INR 1,000-crore greenshoe option, the company said in a statement.
The investment marks one of the largest primary commitments for a minority stake in a renewables platform in India. The GIP investment implies an enterprise value of INR 14,600 crore for Aditya Birla Renewables.
The company has so far grown organically, building a diversified clean-energy portfolio that includes solar, hybrid, floating solar and round-the-clock renewable power projects across ten states.
“The proposed investment by GIP EM will be via one or more preferential issues on a private placement basis, amounting to INR 2,000 crore in various tranches into Aditya Birla Renewables, through a combination of compulsory convertible preference shares and equity shares, subject to the terms and conditions set out in the Securities Subscription Agreement and Shareholders Agreement to be executed among the Company, Aditya Birla Renewables and GIP EM. GIP EM also has the option to invest an additional amount of up to INR 1,000 crore in the form of equity shares, pro-rata to its shareholding in ABRen, subject to the terms of the Shareholders Agreement,” the company said.
Aditya Birla Renewables aims to build a comprehensive renewables platform with a presence across all major technologies, focusing on both commercial and industrial (C&I) segment and utility-scale projects.
Kumar Mangalam Birla, chairman, Aditya Birla Group, said, “GIP’s investment marks a pivotal moment in our growth journey, laying a strong foundation for an accelerated buildout of our renewables platform, as we target a capacity of 10 GW+ in the coming years. Their global leadership in owning and operating some of the most sophisticated energy assets worldwide brings both rigour and reach to our ambition. At the Aditya Birla Group, we see our renewables business emerging as a powerful growth engine for the Group—technologically advanced, capital-efficient, and deeply aligned with the future India is building.”
Raj Rao, GIP President and chief operating officer, 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. Our investment reflects GIP’s confidence in India’s renewables sector and our commitment to advancing the energy transition in India.
Standard Chartered Bank acted as the sole financial advisor to Aditya Birla Renewables on this transaction.
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