New Delhi: Mahindra Group and Ontario Teachers’ Pension Plan Board (Ontario Teachers’) have co-sponsored an infrastructure investment trust (InvIT) holding assets in the renewable energy space.
The InvIT, ‘Sustainable Energy Infra Trust’ (SEIT), is India’s largest investment trust in the renewable energy space, a joint statement claimed. SEIT, which made its debut on the National Stock Exchange on 15 September, has raised primary capital of ₹1,365 crore ($165 million) as part of the initial offer of units.
The offer was subscribed by global and Indian investors, including Asian Infrastructure Investment Bank (AIIB).
“As announced earlier, and in line with the commitment made by Mahindra Group and Ontario Teachers’, SEIT has been set up to focus on the growth of the renewable energy sector in India at scale. SEIT holds operational renewable power assets seeded by Mahindra Susten with a generation capacity of approximately 1.54 GWp,” it said in the statement.
“The capital of ₹897.8 crore ($108 million) made available to Mahindra Susten by way of an offer for sale of units of SEIT as a part of the offer will position Mahindra Susten for the next level of growth and development of a future pipeline of renewable energy assets,” it added.
Mahindra Susten and SEIT, as a part of their growth strategy, have entered into a right of first offer (ROFO) arrangement, in compliance with InvIT regulations, whereby renewable energy assets developed by Mahindra Susten will be offered for sale to SEIT.
Both Mahindra Group and Ontario Teachers’ had committed to investing up to ₹3,050 crore ($368 million) and ₹3,550 crore ($428 million) respectively into Mahindra Susten and SEIT.
“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,” Anish Shah, group CEO & MD, Mahindra Group said.
The government’s focus on renewable and sustainable energy makes the industry very attractive for investments thereby enabling further growth of SEIT’s portfolio, Avinash Rao, CEO of the investment manager to SEIT said.
Kotak Mahindra Capital, Axis Capital and Avendus Capital Private Limited acted as placement agents for the transaction. Cyril Amarchand Mangaldas acted as legal counsels to SEIT and the sponsors and S&R Associates acted as legal counsels to the placement agents, the statement added.
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Published: 15 Jan 2024, 03:10 PM IST