Mahindra Group and Ontario Teachers' Co-Sponsor Renewable Energy InvIT

By siliconindia  |  Tuesday, 16 January 2024, 10:24:20 AM IST

Mahindra Group and Ontario Teachers' Co-Sponsor Renewable Energy InvIT
Mahindra Group and Ontario Teachers' Pension Plan Board, a global institutional investor, have collaborated to co-sponsor an infrastructure investment trust (InvIT) housing a 1.54 GW asset portfolio within India's renewable energy sector. The InvIT, known as Sustainable Energy Infra Trust (SEIT), stands as the largest in India's renewable energy landscape and has successfully garnered an initial capital of Rs 1,365 crore through its primary unit offering, as per the Mahindra Group's statement.
Numerous global and Indian investors, including the Asian Infrastructure Investment Bank (AIIB), participated in the subscription to the offering. SEIT marked its debut on the National Stock Exchange, aiming to foster substantial growth in India's renewable energy sector. It possesses operational renewable power assets with a generation capacity of approximately 1.54 GWp, originally initiated by Mahindra Susten. The capital infusion of Rs 897.8 crore, secured through the sale of SEIT units, will facilitate Mahindra Susten in cultivating a future portfolio of renewable energy assets.
As part of their expansion strategy, Mahindra Susten and SEIT have entered into a Right Of First Offer (ROFO) arrangement, adhering to InvIT Regulations. This stipulates that renewable energy assets developed by Mahindra Susten will be offered for sale to SEIT. Mahindra Group and Ontario Teachers' committed investments of up to Rs 3,050 crore and Rs 3,550 crore, respectively, in Mahindra Susten and SEIT.
Anish Shah, Group CEO & MD of Mahindra Group, articulated Mahindra Susten's ambitious plans for achieving 5X growth in the next five years. He highlighted the substantial contributions of Mahindra Susten and SEIT to both the Group's and the nation's green energy objectives. Ontario Teachers' Pension Plan Board, a global investor with net assets amounting to USD 249.8 billion as of June 30, 2023, is actively engaged in this venture.

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