Mahindra, Ontario Teachers' Co-Sponsor Renewable Energy InvIT


MahindraMahindra Group and Ontario Teachers' Pension Plan Board, a global institutional investor, have jointly sponsored an infrastructure investment trust (InvIT) with a portfolio of 1.54 GW in India's renewable energy sector. Named Sustainable Energy Infra Trust (SEIT), this InvIT is the country's largest in the renewable energy domain. As per Mahindra Group's announcement, SEIT has garnered an initial capital of Rs 1,365 crore through the initial unit offering.

Several international and Indian investors, including the Asian Infrastructure Investment Bank (AIIB), participated in the subscription of the offer. SEIT made its debut on the National Stock Exchange, focusing on scaling the growth of India's renewable energy sector. It possesses operational renewable power assets with a generation capacity of around 1.54 GWp, originally seeded by Mahindra Susten. The capital infusion of Rs 897.8 crore, acquired through the offer for the sale of SEIT units, will aid Mahindra Susten in developing a future pipeline of renewable energy assets. 

As part of their expansion strategy, Mahindra Susten and SEIT have engaged in a Right Of First Offer (ROFO) arrangement, complying with InvIT Regulations. This arrangement stipulates that renewable energy assets developed by Mahindra Susten will be presented for sale to SEIT. Both Mahindra Group and Ontario Teachers' pledged investments of up to Rs 3,050 crore and Rs 3,550 crore, respectively, in Mahindra Susten and SEIT.

Anish Shah, Group CEO & MD of Mahindra Group, expressed the ambitious plans of Mahindra Susten for achieving 5X growth in the next five years. He emphasized the significant contributions of Mahindra Susten and SEIT to both the Group's and the nation's green energy objectives. Ontario Teachers' Pension Plan Board, a global investor with net assets totaling USD 249.8 billion as of June 30, 2023, is actively involved in this venture.