Why Grasim Industries shares are in spotlight on Wednesday, December 10

The deal entails a commitment of ₹2,000 crore (nearly $225 million) and a greenshoe option to invest another ₹1,000 crore (nearly $110 million).

This deal, the company said, 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 nearly ₹14,600 crore for ABREN.

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

What top brass said

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."

The chairman added that GIP’s investment marks a pivotal moment in the company's growth journey, laying a strong foundation for an accelerated buildout of our renewables platform, as it targets 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 the company's ambition.

"At the 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," Birla said further.

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."

Rao added, "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 decarbonisation objective. Our investment reflects GIP’s confidence in India’s renewables sector and our commitment to advancing the energy transition in India."

About Aditya Birla Renewables Limited (“ABREN”)

ABREN is the renewable energy holding company of the Aditya Birla Group and a wholly owned subsidiary of Grasim Industries Ltd. ABREN has emerged as one of India’s largest Commercial and Industrial (C&I)-focused renewable energy platforms with a portfolio of ~4.3 GW.

About Grasim Industries

Aditya Birla Group's Grasim Industries Limited started as a textile manufacturing company in 1947. The company was incorporated just 10 days after India's independence. Over the years, it diversified its portfolio to establish itself as an important player across many sectors.

The company is a leading producer of viscose, diversified chemicals, linen yarn, and fabrics. Grasim Industries has interests in the paint, financial services, cement, and clean energy businesses.