Mahindra, Ontario Teachers Launch ₹22.63 Billion Renewable Infra Investment Trust

The fund raised ₹13.65 billion in the initial offering


Mahindra Group and Ontario Teachers’ Pension Plan Board have announced an Infrastructure Investment Trust (InvIT), dubbed Sustainable Energy Infra Trust (SEIT), with an initial capital raise of ₹13.65 billion ($165 million) to advance the renewable energy sector in India.

The initial offer was subscribed by global and Indian investors, including the Asian Infrastructure Investment Bank, as SEIT made its debut on the National Stock Exchange of India.

The companies claimed the trust is the largest of its kind, holding about 1.54 GW of operational renewable power assets.

An offer for the sale of units of the SEIT raised ₹8.98 billion ($108.17 million) for Mahindra Susten, Mahindra Group’s renewable energy arm, for the firm to develop a pipeline of renewable energy assets.

Mahindra Susten and SEIT also entered a Right of First Offer (ROFO) whereby renewable energy assets developed by Mahindra Susten will be offered for sale to SEIT.

“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,” said Dr. Anish Shah, Group CEO & MD, Mahindra Group, in a statement.

Kotak Mahindra Capital Company, Axis Capital, and Avendus Capital acted as placement agents for the transaction. Cyril Amarchand Mangaldas acted as legal counsel to SEIT, and the Sponsors and S&R Associates acted as legal counsel to the placement agents.

Mahindra Group and Ontario Teachers’ had committed to invest up to ₹30.5 billion ($368 million) and ₹35.5 billion ($428 million), respectively, into Mahindra Susten and SEIT.

Ontario Teachers’ Pension Plan Board is a global investor with net assets under management of $249.8 billion as of June 30, 2023.

In September 2022, the company had acquired a 30% equity stake in Mahindra Susten, a cleantech arm of Mahindra Group, for an equity value of ₹23.71 billion (~$300 million) and announced the plans to set up an InvIT.

In November 2023, a Mahindra Group special purpose vehicle, Hazel Hybren, emerged among the winners in NHPC’s auction to develop 3 GW of interstate transmission system (ISTS)-connected solar power projects across India.