Mahindra sells 30% in green arm to Canada fund for Rs 2k crore

Mahindra Group has sold 30% stake in its renewable energy unit Mahindra Susten to Canadian pension fund Ontario Teachers’ Pension Plan (OTTP) for Rs 2,317 crore (nearly $300 million), an exchange filing showed.
“This will enable the Mahindra Group to unlock value in the renewable energy sector and it will continue to invest along with Ontario Teachers’ to help realise its twin objectives of accelerated growth and global leadership in ESG,” Mahindra Group said.
Pension and infrastructure funds often buy stakes in renewable energy generation projects, tempted by the predictable long-term returns.
As part of the proposed transaction, shareholder loans of Rs 575 crore ($73 million) advanced by Mahindra Group to Mahindra Susten will be repaid. 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.