BlackRock unit to invest up to ₹3,000 crore in Grasim’s renewable energy platform

Global Infrastructure Partners (GIP), part of the world’s largest asset manager BlackRock, will invest ₹It has received Rs 3,000 crore for a minority stake in Aditya Birla Renewables Ltd (ABR), a subsidiary of Grasim Industries Ltd, the company said in a statement on Tuesday evening.

GIP investment translates into a corporate value of approx. ₹14,600 crore for ABR, according to a press release issued late on Tuesday.

Agreement outlines a firm commitment ₹2,000 crore in multiple tranches by GIP through compulsory issuance of convertible preference shares and equity shares. You will also have the option of green shoes to invest additionally ₹1,000 crore in the form of shares.

Separately, Essel Mining & Industries Ltd, another Aditya Birla Group company, will also invest ₹500 billion in the current fiscal year to fund urgent capital requirements, according to a separate notice to stock exchanges.

ABR’s renewable energy move

ABR is the affiliated renewable energy platform of the Aditya Birla Group with a portfolio of approximately 4.3 GW spread across 10 states. It includes solar power, hybrid and floating solar power, as well as 24-hour renewable energy. Grasim signed power purchase agreements with other group companies such as Hindalco, UltraTech and Century Enka. The company aims to increase its capacity to 10 GW in the coming years.

GIP is a leading infrastructure investor specializing in owning and operating large assets in the energy, transportation, digital infrastructure, water and waste management sectors. It was acquired by BlackRock in 2024.

“GIP’s worldwide infrastructure experience, combined with Aditya Birla’s technical, operational and industrial capabilities, aims to make Aditya Birla Renewable Energy a leading renewable platform that can contribute to the decarbonisation goal of Indian industry,” said Raj Rao, GIP president and chief operating officer. “Our investment reflects GIP’s confidence in India’s renewable energy sector and our commitment to advancing the energy transition in India.”

Grasim is the flagship company of the Aditya Birla Group engaged in the man-made fiber business. It also owns many of the group’s businesses, including India’s largest cement company UltraTech and the group’s new decorative paint venture Opus.

Grasim shares ended with a 0.12 percent increase ₹2,745.70 on the BSE on Tuesday, against a 0.51% decline in the Sensex. The script has gained over 12% this year.