Aniket PujariGlobal Infrastructure Partners (GIP), part of the world’s largest asset manager BlackRock, will be investing up to ₹3,000 crore in Aditya Birla Renewables Ltd (ABR), a subsidiary of Grasim Industries Ltd, for a minority stake, the company said Tuesday evening.
The GIP investment translates into an enterprise value of about ₹14,600 crore for ABR, as per a press statement issued late on Tuesday.
The deal outlines a firm commitment of ₹2,000 crore by GIP in multiple tranches through the issue of compulsory convertible preference shares and equity shares. Further, it will have a greenshoe option to invest an additional ₹1,000 crore in the form of equity shares.
Separately, Essel Mining & Industries Ltd, another Aditya Birla Group company, will invest ₹500 crore in the current financial year to fund its urgent capital requirements, as per a separate intimation to the bourses.
ABR’s renewables push
ABR is the captive renewable energy platform of the Aditya Birla Group with a portfolio of about 4.3 GW spread across 10 states. It includes solar, hybrid, and floating solar, round-the-clock renewable power. It has signed captive power purchase agreements with fellow group companies like Grasim, Hindalco, UltraTech, and Century Enka. The company aims to scale its capacity upwards of 10 GW in the coming years.
GIP is a leading infrastructure investor specializing in owning and operating large assets across energy, transport, digital infrastructure, water, and waste management sectors. It was acquired by BlackRock in 2024.
“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,” said Raj Rao, GIP president and chief operating officer. “Our investment reflects GIP’s confidence in India’s renewables sector and our commitment to advancing the energy transition in India.”
Grasim is a flagship company of the Aditya Birla Group engaged in the business of manmade fibres. It also holds several of the group’s businesses, including India’s largest cement company, UltraTech and the group’s new decorative paints venture, Opus.
Shares of Grasim ended 0.12% higher at ₹2,745.70 on BSE on Tuesday compared to a 0.51% fall in the benchmark Sensex. The scrip has gained over 12% this year.
