Mahindra Susten to set up Infrastructure Investment Trust

16 Mar 2023 , 09:33 AM

Mahindra Susten, the Mahindra Group’s renewable energy platform, has begun the process of establishing an infrastructure investment trust (InvIT).

According to sources, Kotak Mahindra, Axis, and Avendus Capital have been tasked with overseeing the process.

The group’s renewable engineering, procurement, and construction (EPC) unit (with more than 4 GW of capacity constructed) as well as an independent power production (IPP) unit with approximately 1.54 GW of operational solar plants comprise Mahindra Susten’s businesses.

According to the sources, the InvIT will include the 1.54 GW IPP business and will be valued between Rs 3,000 and Rs 3,500 crore. 

The Ontario Teachers’ Pension Plan Board, a Canadian pension fund, already owns about 30% stake in Mahindra Susten.

In September 2022, Ontario Teachers paid Rs2,371 crore for a minority stake in Mahindra Susten. Prior to that, talks with Brookfield, another Canadian asset manager, for a Rs6,000 crore sale of the business had fallen through in 2021.

Through its third-party Utility Scale Solar business, Mahindra Susten undertakes turnkey EPC projects ranging from solar panel installation, site survey, and feasibility report to plant lifetime maintenance.

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