**GIP to Invest ₹3,000 Crore in Aditya Birla Renewables for Minority Stake**
Global Infrastructure Partners (GIP), a subsidiary of BlackRock, is set to invest up to ₹3,000 crore in Aditya Birla Renewables Ltd (ABR), a unit of Grasim Industries Ltd, for a minority stake. This investment values ABR at approximately ₹14,600 crore, as announced in a press release on Tuesday evening. The deal includes a firm commitment of ₹2,000 crore from GIP, which will be executed in multiple tranches through compulsory convertible preference shares and equity shares. Additionally, GIP has a greenshoe option to invest an extra ₹1,000 crore in equity shares.
In a related development, Essel Mining & Industries Ltd, another company within the Aditya Birla Group, plans to invest ₹500 crore in the current financial year to address its immediate capital needs.
ABR serves as the renewable energy platform for the Aditya Birla Group, boasting a portfolio of around 4.3 GW across ten states. This portfolio encompasses solar, hybrid, and floating solar projects, as well as round-the-clock renewable power. ABR has established captive power purchase agreements with other group companies, including Grasim, Hindalco, UltraTech, and Century Enka, and aims to expand its capacity to over 10 GW in the coming years.
GIP is recognized as a leading infrastructure investor, focusing on large-scale assets in sectors such as energy, transport, digital infrastructure, water, and waste management. The firm was acquired by BlackRock in 2024.
Raj Rao, GIP’s president and chief operating officer, stated, “GIP’s global infrastructure experience, combined with Aditya Birla’s technical and operational expertise, aims to position Aditya Birla Renewables as a leading renewable platform that supports the decarbonization goals of the Indian industry. Our investment underscores GIP’s confidence in India’s renewable sector and our commitment to facilitating the energy transition in the country.”
Grasim Industries, a flagship company of the Aditya Birla Group, is primarily involved in the manmade fibers sector and also oversees several other group businesses, including UltraTech, India’s largest cement company, and the new decorative paints venture, Opus.
In market activity, shares of Grasim closed 0.12% higher at ₹2,745.70 on Tuesday, contrasting with a 0.51% decline in the benchmark Sensex. The stock has appreciated over 12% this year.
**FAQ**
**What is the significance of GIP’s investment in Aditya Birla Renewables?**
GIP’s investment signifies a strong commitment to the renewable energy sector in India, aiming to enhance ABR’s capacity and support the country’s decarbonization efforts.