Wednesday, February 8, 2023

Latest Posts

Mahindra Group sells 30% share for equity value of Rs 2,372 in renewable arm

New Delhi: Mahindra Susten has sold a 30% share to the Ontario Teachers’ Pension Plan Board for Rs 2,371 crore ($300 million). By May 31, 2023, Mahindra Group and Ontario Teachers’ will work together to investigate selling a further 9.99 percent ownership in Mahindra Susten.

Additionally, the creation of an Infrastructure Investment Trust (InvIT) for the listing of renewable energy assets is part of the proposed investment. By 2024, the business plans to flog the InvIT.

The Mahindra Group’s renewable energy company is called Mahindra Susten. It is a 1.5 Gw independent power producer with a 4 Gw constructed capacity in the engineering, procurement, and construction (EPC) industry.

Also Read :- ONGC urges govt to eliminate windfall tax, employ dividends to tap into earnings

The action is in response to the Mahindra Group’s decision in 2020 to float its 10 firms and increase their value for shareholders. This includes its impact on rural, financial services, infrastructure, technology, sustainable energy, mobility, and other areas.

According to the company’s public announcement, over the course of the following seven years, the Mahindra Group will invest these monies, together with an additional sum of up to Rs 1,750 crore ($220 million), in the company and InvIT. The company stated that over the next seven years, Ontario Teachers’ has promised to invest up to Rs 3,550 crore ($450 million) further into the company and the InvIT.

“As part of the proposed transaction, shareholder loans of Rs 575 crore ($73 million) advanced by the Mahindra Group to Mahindra Susten will be repaid,” said the company. As a result of this transaction, Mahindra Group will receive an inflow of approximately Rs 1,300 crore ($165 million). The proposed InvIT would initially consist of renewable power assets seeded by Mahindra Susten with operational capacity of around 1.54 GWp.

Also Read :- Direct tax collection jumps 23% YoY basis to over Rs 7 lakh cr

“This transaction will enable Mahindra Susten to build a strong renewable energy business focused on solar energy, hybrid energy, integrated energy storage & round-the-clock (RTC) green energy plants,” said the company.

Deepak Thakur, managing director & chief executive officer, Mahindra Susten said: “This platform will leverage our proven experience in development and deep knowledge of the Indian energy market. Our in-house EPC capabilities honed across renewable energy projects executed globally ensure Mahindra Susten engineers and delivers superior performing assets.”

Also Read :- Gold, silver being sold at all time low, check prices here

“The Mahindra Group aims to be “Planet Positive by 2040”, and the continued inflow of patient, long-term capital in our climate positive businesses validates our commitment to be a global ESG leader,” said Puneet Renjhen, member of group executive board and Executive Vice=President, Partnerships & Alliances, Mahindra Group.

Bruce Crane, Senior Managing Director, Asia Pacific, Infrastructure & Natural Resources at Ontario Teachers’ said, “As part of our climate change strategy, we have committed to continue growing our portfolio of green assets around the globe with investments like Mahindra Susten. This strategic partnership marks the beginning of what we hope will be a long-term and mutually beneficial relationship with the Mahindra Group.”

With net assets of C$242.5 billion and exposure to almost 50 nations, the Ontario Teachers’ Pension Plan Board is a significant international investor.

Read More :- Latest Business News

Click Here – Download The News 24 App

Latest Posts

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -