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Global Infrastructure Partners (part of BlackRock) to invest up to INR 3,000 Crores or ~$335 Mn in Aditya Birla Renewables for a minority stake

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  • Deal amongst the largest primary commitments by a private equity player in a renewables platform in India  
     

Aditya Birla Renewables Limited (“ABREN”), a subsidiary of Grasim, has finalized an investment by Global Infrastructure Partners (“GIP”), part of BlackRock, one of the world’s leading infrastructure investors, of up to INR 3,000 Crores, with a commitment of INR 2,000 Crores (~USD $225 Mn) and a greenshoe option to invest another INR 1,000 cr (~USD 110 Mn). This deal marks one of the largest primary commitments for a minority stake in a renewables platform in India. The GIP investment translates into an enterprise value of ~INR 14,600 Crores for ABREN.

ABREN has achieved robust organic growth, building a diversified pan-India renewable energy portfolio of ~4.3 GW across 10 states. This portfolio delivers solar, hybrid, floating solar, round-the-clock renewable power, reinforcing ABREN’s formidable position in sustainable energy.

Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “India stands at the cusp of an energy transformation, arguably one of the largest anywhere in the world. 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. 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 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.”

Mr. Jayant Dua, Business Head, ABREN, said, “ABREN is on an accelerated growth journey, and we look forward to this partnership with GIP as we build on our competitive positioning in the renewables sector in India. ABREN, backed by an experienced team, is well positioned to achieve its growth ambitions by executing complex, large-scale renewable projects. We aim 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."

Mr. 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. Our investment reflects GIP’s confidence in India’s renewables sector and our commitment to advancing the energy transition in India."

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.