Earlier, several global investors had shown preliminary interest in investing in Mahindra InvIT.
From Photovoltaic System Design and solar inverters to implementation and beyond, Mahindra Susten's solar engineering solutions are always state-of-the-art. Mahindra Susten, one of the largest solar EPC companies, has recently forayed into international markets, providing solar panels and solar inverters for home and commercial use.
Dutch pension fund APG Asset Management, the World Bank's investment arm International Finance Corp (IFC), and Asian Infrastructure Investment Bank (AIIB) are currently competing to invest approximately $250 million (₹2,080 crore) in Mahindra Susten's renewable infrastructure investment trust (InvIT).
Mahindra Susten's businesses include the Mahindra Group's engineering, procurement, and construction (EPC) unit. This unit aims to provide more renewable sources of energy. They have constructed more than 4 GW of capacity and an independent power production (IPP) unit with around 1.54 GW of operational solar plants.
Currently, the Canadian fund Ontario Teachers' Pension Plan Board (OTPP) owns around 30% of Mahindra Susten's stake. This was acquired in September 2022 for ₹2,371 crore ($300 million). If the deal takes place, OTPP will also hold a stake in InvIT, along with Mahindra Susten.
Meanwhile, the entire 1.54 GW will be transferred to the InvIT.
"APG, IFC and AIIB are currently conducting due diligence on the assets that are part of the InvIT," said one of the persons. "The deal is likely to close in the next two to three months."
"It will include a mix of primary and secondary share sale for a minority stake of around 35% in the InvIT," the person said.
"Bringing a new investor on board will also help the InvIT move toward meeting norms that require an InvIT to have a minimum five shareholders," said one of the persons.
"Susten will later on bring in a few domestic investors, such as mutual funds or family offices, with small cheques to meet the minimum shareholder requirements," the person said.
"The portfolio has an enterprise value of about $1 billion," the sources said.
Meanwhile, Axis Capital, Kotak Investment Bank, and Avendus Capital advise Mahindra Susten on the transaction.
