BlackRock's GIP to Invest Up to ₹3,000 Crore in Aditya Birla Renewables for Minority Stake

10 Dec 2025 , 10:21 AM

Grasim Industries announced on December 9 that Global Infrastructure Partners, which is part of BlackRock, will invest up to ₹3,000 crore in Aditya Birla Renewables, a subsidiary of the company.

The investment will give GIP a minority stake in the renewables business. The total amount includes a firm commitment of ₹2,000 crore along with a greenshoe option of an additional ₹1,000 crore.

The funds will be infused through GIP EM Star Pte Limited by way of preferential issues on a private placement basis in one or more rounds. The committed investment of ₹2,000 crore will be made through multiple tranches, consisting of a mix of Compulsory Convertible Preference Shares and Equity Shares.

GIP also has the choice to invest the additional ₹1,000 crore through equity shares on a pro rata basis, subject to terms agreed in the shareholders agreement.

Based on the deal structure, the transaction values Aditya Birla Renewables at an enterprise value of nearly ₹14,600 crore. The investment is among the largest primary commitments by a private equity firm for a minority holding in an Indian renewable energy platform.

Aditya Birla Renewables has built a diversified clean energy portfolio of about 4.3 gigawatts across 10 states, covering solar, hybrid, floating solar and round the clock renewable power projects.

Grasim’s board has approved the investment along with the execution of the related securities subscription and shareholder agreements. The transaction will require customary closing conditions and regulatory approvals.

Once completed, Aditya Birla Renewables will no longer remain a wholly owned subsidiary of Grasim but will continue to function as a subsidiary. Standard Chartered Bank acted as the sole financial advisor to Aditya Birla Renewables for this transaction.

Kumar Mangalam Birla said the partnership with GIP strengthens the company’s expansion plans as it aims to scale renewable capacity beyond 10 gigawatts in the coming years.

He added that GIP’s experience in managing global energy assets will support the group’s ambition to grow a modern and capital efficient renewables platform. Raj Rao, President and Chief Operating Officer at GIP, said the firm is pleased to partner with the Aditya Birla Group to support innovation and to help build a leading renewable platform aligned with India’s decarbonisation goals.

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