The largest utility company of India, Tata Power has bought 11.4% equity stake in Australian firm, Geodynamics. Tata Power is a biggest private company which generates a huge amount of electricity, while Geodynamics is a geothermal energy company.

Geothermal power is generated from the heat stored below the surface of earth. Tata Power’s investment in Geodynamics amounted to A$44.1 million (about Rs165 crores).

The deal would boost the Mumbai-based power company’s business in the national and international market in the energy sector. TATA would be the biggest share holder in the company.

Geodynamics confirmed the deal at the Australian stock exchange on Thursday. TATA purchased an unquoted placement option exercisable at A$2.25 per share for every two shares issued. Tata Power MD, Prasad Menon said that the deal would increase its prospectus in the growing renewable energy market in Australia. Both TATA energy and Geodynamics has also decided to examine potential geothermal energy prospects outside Australia.