Mahindra Group And Ontario Teachers' Co-Sponsor India's Largest Renewable Energy InvIT With ₹2,262.8 Cr Offer Size

Mahindra Group and Ontario Teachers' Pension Plan Board have jointly sponsored India's largest Infrastructure Investment Trust (InvIT) in renewable energy, named 'Sustainable Energy Infra Trust' (SEIT). With a primary capital raise of Rs 1,365 Crore (USD 165 Million), the InvIT has debuted on the National Stock Exchange of India Limited, drawing significant subscription from global and Indian investors, including the Asian Infrastructure Investment Bank (AIIB), the company on Monday announced through an exchange filing.

Operational Assets and Growth Plans

SEIT, with a generation capacity of around 1.54 GWp, holds operational renewable power assets initially seeded by Mahindra Susten. The capital infusion of Rs 897.8 Crore (USD 108 Million) through an offer for sale of SEIT units will enable Mahindra Susten's growth and development of a future pipeline of renewable energy assets.

Strategic Partnership and Investment from Stakeholders

Under their growth strategy, Mahindra Susten and SEIT have entered a Right Of First Offer (ROFO) arrangement, in compliance with InvIT Regulations. Both Mahindra Group and Ontario Teachers' had committed substantial investments of up to Rs 3,050 Crore (USD 368 Million) and Rs 3,550 Crore (USD 428 Million), respectively, into Mahindra Susten and SEIT.

Dr. Anish Shah, Group CEO & MD, Mahindra Group, said, “The Government of India has laid down ambitious targets to reduce the carbon intensity of the nation’s economy by 45% by the end of the decade and achieve net-zero carbon emissions by 2070. 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."

Avinash Rao, CEO of the Investment Manager to SEIT, commented, “Renewable energy is a core sector for India with significant growth potential. The Government’s focus on renewable and sustainable energy makes the industry very attractive for investments thereby enabling further growth of our portfolio. An InvIT as an instrument is investor friendly and attracts significant interest in operating renewable energy and infrastructure investments in India."

Placement Agents to the transaction and legal counsels

Kotak Mahindra Capital Company Limited, Axis Capital Limited and Avendus Capital Private Limited acted as Placement Agents to the transaction. Cyril Amarchand Mangaldas acted as legal counsels to SEIT and the Sponsors. S&R Associates acted as legal counsels to the Placement Agents