Mahindra Group and Ontario Teachers' co-sponsor India's largest renewable energy InvIT

Mahindra-Ontario InVIT: Mahindra Group, a prominent player in farm equipment, utility vehicles, information technology, and financial services, joined forces with the Ontario Teachers’ Pension Plan Board (Ontario Teachers’) to co-sponsor India's largest Infrastructure Investment Trust (InvIT) in the renewable energy sector. The InvIT, named "Sustainable Energy Infra Trust" (SEIT), boasts an impressive offer size of Rs 2,262.8 crore.

SEIT recently made its debut on the National Stock Exchange of India Limited after raising primary capital of Rs 1,365 crore through its initial offer of units. This substantial investment attracted participation from global and Indian investors, including the Asian Infrastructure Investment Bank (AIIB).

Mahindra Susten investments in renewables

As part of the commitment made by Mahindra Group and Ontario Teachers', SEIT focuses on driving growth in India's renewable energy sector. It currently holds operational renewable power assets with a generation capacity of approximately 1.54 GWp, seeded by Mahindra Susten.

Mahindra Susten, in conjunction with SEIT, aims for significant growth in the next five years, contributing to both the nation's green energy goals and the Mahindra Group's objectives. The partnership involves a Right of First Offer (ROFO) arrangement, ensuring that renewable energy assets developed by Mahindra Susten will be offered for sale to SEIT.

Speaking about the development, Anish Shah, Group CEO & MD, Mahindra Group, expressed, “The listing of SEIT is a testament to the Group’s ability to attract strong external investoRs Mahindra Susten has ambitious plans to achieve 5X growth in the next five years and will contribute to both the Groups’ and the nation’s green energy goals."

Deb Hajara, Managing Director, Infrastructure & Natural Resources at Ontario Teachers’, added, “This milestone not only reinforces our commitment to invest globally in green and transition assets but also demonstrates the attractiveness of renewable energy investment opportunities in India.”

Avinash Rao, CEO of the Investment Manager to SEIT, highlighted the investor-friendly nature of InvIT as an instrument and the significant interest it attracts in renewable energy and infrastructure investments in India.

The transaction was facilitated by Kotak Mahindra Capital Company Limited, Axis Capital Limited, and Avendus Capital Private Limited as Placement Agents. Legal counsel to SEIT and the Sponsors was provided by Cyril Amarchand Mangaldas, while S&R Associates acted as legal counsel to the Placement Agents.