Grasim Industries announces that its subsidiary, Aditya Birla Renewables Limited (ABREN), will receive an investment of up to INR 3,000 Crores (~$335 Mn) from Global Infrastructure Partners (GIP), a part of BlackRock. This investment, in exchange for a minority stake, will support ABREN’s growth in the renewable energy sector and marks one of the largest primary commitments in the Indian renewables market. The deal values ABREN at approximately INR 14,600 Crores.
Investment Overview
Grasim Industries’ subsidiary, Aditya Birla Renewables Limited (ABREN), has finalized an investment agreement with Global Infrastructure Partners (GIP), a part of BlackRock. The investment will total up to INR 3,000 Crores (~$335 Mn) and will be allocated through a combination of equity and convertible preference shares.
Investment Details
The investment will be executed via one or more preferential issues on a private placement basis. This includes a firm commitment of INR 2,000 Crores (~USD $225Mn), with a greenshoe option for an additional INR 1,000 cr (~USD 110 Mn). GIP’s investment will result in a minority stake in ABREN.
Strategic Rationale
The investment aims to support ABREN’s expansion in the renewable energy sector, targeting a capacity of 10 GW+ in the coming years. This partnership is expected to leverage GIP’s global experience and Aditya Birla’s operational capabilities.
ABREN’s Renewable Portfolio
ABREN has built a renewable energy portfolio of approximately 4.3 GW across 10 states, encompassing solar, hybrid, and floating solar projects.
Management Commentary
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, highlighted India’s potential in the renewable energy sector and emphasized the strategic importance of this investment for accelerated growth.
Mr. Raj Rao, GIP President and Chief Operating Officer, expressed excitement about the partnership, emphasizing the potential for innovation and contribution to India’s decarbonization goals.
Source: BSE
