M&M's Sustainable Energy Infra Trust Set for Listing Next Week, AIIB Anchors Investment

10 Jan 2024 , 11:43 AM

M&M plans to list its infrastructure business trust, Sustainable Energy Infra Trust, for renewable assets next week.

Subscription for the listing has reportedly been completed, with AIIB as a key anchor investor in the offering.

The private InvIT listing involves assets under M&M’s subsidiary, Mahindra Susten, aiming to raise about Rs 2,350 crore.

Business trust’s enterprise value is estimated at around Rs 6,800 crore, according to informed sources.

AIIB leads the investment, with DIIs holding approximately 40 % stake in the business trust.

Existing investor OTPP is expected to retain about 33 percent stake post additional investments, while Mahindra Susten and Mahindra Group will hold 15 % and the remaining stake, respectively.

M&M, AIIB, and OTPP have not provided official responses to the developments.

Axis Capital and Kotak Investment Banking served as advisors for the business trust.

The InvIT rollout is a crucial stage for M&M’s renewable energy business, providing an opportunity for value unlocking and balance sheet deleveraging.

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