Canadian institutional investor Caisse de dépôt et placement du Québec (CDPQ) has invested ₹1,244 crore s for acquiring 1.92 crore shares in Mahindra & Mahindra (M&M) Benefit Trust.

Quebec-based CDPQ manages more than C$309.5 billion for several public and para-public organisations, mainly pension and insurance plans in 60 countries.

The M&M Benefit Trust was created in July 2008 for the exclusive benefit of Mahindra & Mahindra Ltd. The shares held by the Trust were the outcome of various mergers and schemes of amalgamation. The Trust held 10.36 crore shares of Mahindra & Mahindra Ltd.

After Monday’s transaction, the M&M Benefit Trust will hold 8.44 crore shares, representing 6.8 per cent of the equity capital of Mahindra & Mahindra, the company said.

“Since the Benefit Trust holds M&M shares for the benefit of its shareholders, it has decided to monetise part of the holding by divesting to a long-term, high-quality investor. This is the first investment by CDPQ in the Mahindra Group reposing their faith in the future prospects of the company and Indian economy in general,” said VS Parthasarathy, Mahindra Group CFO.

According to the Trust Deed, the proceeds of the sale would be transferred to Mahindra & Mahindra Ltd, which would be used by the company for various operational requirements.