Mumbai: Tata Power Company Ltd will acquire 29.4 million shares in Australian renewable energy firm Geodynamics Ltd, comprising 10 per cent of its equity stake, for an equivalent of around Rs165 crore.

The acquisition represents 11.4 per cent of the current issued share capital of the company and 10 per cent of the increased share capital after allotment by Geodynamics, Tata Power said in a release.

The acquisition will be made either by itself or through one or more of its subsidiaries in India or abroad, the company said in the release.

''The shares will be acquired by TPC at an issued price of A$1.5 per share, entailing a total investment of Australian $ 44.1 million (approx Rs165 crore)," the release said.

''This strategic partnership not only strengthens our renewable portfolio but also creates opportunities to get a foothold in the growing renewable energy market in Australia. We look forward to the synergistic opportunities that the alliance presents us,'' Prasad Menon, managing director of Tata Power, said.

Tata Power will also get a directorship on the board of Geodynamics.

''We look forward to the synergistic opportunities that the alliance presents us," he added.

In addition to investment, the companies have agreed to review the potential of geothermal prospects outside Australia by leveraging the companies' respective strengths.

Geodynamics, with a market capitalisation in excess of A$350 million, is one of the industry leaders in EGS. It has geothermal exploration interests in three Australian states, including the license for exploring 2,000 sq km of area in the Cooper Basin.