BlackRock's Global Infrastructure Partners to invest ₹3,000 crore in Aditya Birla Renewables

Aditya Birla Group flagship holding firm Grasim Industries Ltd on Tuesday (December 9) said Global Infrastructure Partners, part of BlackRock, will invest up to ₹3,000 crore in Aditya Birla Renewables Ltd, a subsidiary of the company, for a minority stake.

The investment includes a firm commitment of ₹2,000 crore and a greenshoe option of up to ₹1,000 crore. The investment will be made through GIP EM Star Pte Limited by way of one or more preferential issues on a private placement basis.

The ₹2,000 crore investment will be executed in multiple tranches through a combination of Compulsory Convertible Preference Shares and Equity Shares. GIP EM also has the option to invest an additional ₹1,000 crore through equity shares, on a pro-rata basis to its shareholding, subject to the terms of the Shareholders Agreement.

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The transaction implies an enterprise value of approximately ₹14,600 crore for Aditya Birla Renewables. The deal ranks among the largest primary commitments by a private equity investor for a minority stake in an Indian renewables platform. Aditya Birla Renewables has built a pan-India renewable energy portfolio of around 4.3 GW across 10 states, covering solar, hybrid, floating solar and round-the-clock renewable power.

The Board of Directors of Grasim Industries has approved the investment and the execution of the Securities Subscription Agreement and Shareholders Agreement. The transaction is subject to customary closing and regulatory approvals. Post completion, Aditya Birla Renewables will cease to be a wholly owned subsidiary of Grasim but will continue as a subsidiary.

The transaction is subject to receipt of necessary statutory and regulatory approvals and completion of other conditions precedent. Standard Chartered Bank acted as the sole financial advisor to ABREN on this transaction.

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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, “We are excited to partner with Aditya Birla Group, one of India’s leading conglomerates, as today’s announcement will allow us to continue to support innovation at scale.

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."

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Shares of Grasim Industries Ltd ended at ₹2,750.00, up by ₹5.80, or 0.21%, on the BSE.