Mahindra Group and Ontario Teachers' Pension Plan Board launch infra InvIT

SEIT has raised primary capital of Rs 1365 Crore ($165 million) as part of the initial offer of units (Offer).

Mahindra Group and the Ontario Teachers’ Pension Plan Board have co-sponsored an Infrastructure Investment Trust (InvIT) holding assets in the renewable energy space. The Sustainable Energy Infra Trust (SEIT) , which made its debut on the National Exchange on January 15, is said to be India’s largest in the renewable energy space.

SEIT has raised primary capital of Rs 1,365 crore ($165 million) as part of the initial offer of units. The offer was subscribed to by marquee global and Indian investors, including the Asian Infrastructure Investment Bank (AIIB), the company said in a release.

As announced earlier, SEIT has been set up to focus on the growth of the renewable energy sector in India at scale. SEIT holds operational renewable power assets seeded by Mahindra Susten with a generation capacity of approximately 1.54 GWp.

“The listing of SEIT is a testament to the Group’s ability to attract strong external investors. Mahindra Susten plans to achieve 5X growth in the next five years and will contribute to both the group’s and the nation’s green energy goals,” Group CEO & MD of Mahindra Group Anish Shah said.

The capital of Rs 897.8 crore ($108 million) has been made available to Mahindra Susten by way of an offer for the sale of units of SEIT, the company added.

Mahindra Susten and SEIT have entered into a Right of First Offer (ROFO) arrangement in compliance with InvIT Regulations, whereby renewable energy assets developed by Mahindra Susten will be offered for sale to SEIT.

Both Mahindra Group and Ontario Teachers’ have committed to invest up to Rs 3050 crore ($368 Million) and Rs 3,550 crore ($428 million), respectively, into Mahindra Susten and SEIT.

“This milestone not only reinforces our commitment to investing globally in green and transition assets but also demonstrates the attractiveness of renewable energy investment opportunities in India,” Managing Director of Infrastructure & Natural Resources at Ontario Teachers’ Deb Hajara said.

Kotak Mahindra Capital, Axis Capital and Avendus Capital have acted as the placement agents for the transaction. Cyril Amarchand Mangaldas has acted as legal counsels to SEIT and the sponsors while S&R Associates were the legal counsels to the placement agents.