IFC, APG, and AIIB are competing with one another to invest Rs 2,000 crore in Mahindra InvIT

According to a report by The Economic Times, a number of significant international investors, including the Dutch pension fund APG Asset Management, the International Finance Corporation (IFC), and the Asian Infrastructure Investment Bank (AIIB), are competing with one another to invest up to Rs 2,080 crore ($250 million) in Mahindra Susten renewable infrastructure investment trust (InvIT).

According to sources cited by ET, Mahindra Susten’s companies, which have a market worth of roughly $1 billion, include an independent power production (IPP) unit and an engineering, procurement, and construction (EPC) company focused on renewable energy.

 

The sources further said that the purchase would probably finalize in two to three months. The assets that are a part of Mahindra InvIT are now the subject of due diligence by all three international investors.

 

According to further information provided by the source acquainted with the situation, the purchase would also comprise main and secondary shares of the sale of a 35% investment in Mahindra InvIT. To achieve the minimal shareholder criteria, the firm will subsequently onboard a few domestic investors, such as mutual funds or family officials.

 

About 30% of the stock of the renewable energy company Mahindra Susten Pvt. Ltd. is owned by the Canadian fund Ontario Teachers’ Pension Plan Board (OTPP), with a value of $300 million.

 

For the transaction, Ambit served as the financial adviser to Ontario Teachers’ and Avendus Capital served as the financial advisor to the Mahindra Group. The transaction aims to establish an infrastructure investment trust (InvIT) in accordance with the Securities and Exchange Board of India’s rules.

 

In May 2023, Mahindra Group and Ontario Teachers’ reportedly discussed selling a further 9.99% share in Mahindra Susten together. Over the course of the next seven years, the conglomerate invested these monies, together with an additional sum of up to 1,750 crore, in the company and the InvIT.