Sustainable Energy Infra Trust (SEIT), an infrastructure investment trust (InvIT) co-sponsored by the Mahindra Group and global investor Ontario Teachers’ Pension Plan Board (OTPP), has raised Rs 2262 crore through an initial offer of its units.
It has raised Rs 1365 crore ($165 million) from marquee global and Indian investors, including Asian Infrastructure Investment Bank (AIIB). Mahindra Susten, the renewable company of Mahindra, raised Rs 897.8 crore ($ 108 million) by way of an offer for sale of units of SEIT as a part of the offer.
It will position Mahindra Susten for the next level of growth and development of a future pipeline of renewable energy assets, OTPP and Mahindra said. The InvIT debuted on the National Stock Exchange (NSE) on Monday, at an issue price of Rs 100 each. Sponsors said the InvIT is the largest in the renewable energy space. SEIT holds operational renewable power assets seeded by Mahindra Susten with a generation capacity of nearly 1.54 GWp (Giga Watt peak).
Mahindra Susten and SEIT, as a part of their growth strategy, 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, the auto to financial services conglomerate, and Ontario Teachers’, had committed to invest up to Rs 3050 crore ($ 368 million) and Rs 3550 crore ($ 428 million) respectively into Mahindra Susten and SEIT.
Dr Anish Shah, group CEO & MD, Mahindra Group, said, “The union government has laid down ambitious targets to reduce the carbon intensity of the nation’s economy by 45% by the end of the decade and achieve net-zero carbon emissions by 2070. The listing of SEIT is a testament to the group’s ability to attract strong external investors.
Mahindra Susten has ambitious plans to achieve 5X growth in the next five years and will contribute to both the Groups’ and the nation’s green energy goals. The renewable energy sector will continue to grow and attract investments and we are excited about both Susten’s and SEIT’s role in developing the right ecosystem.”
Deb Hajara, managing director, Infrastructure & Natural Resources at Ontario Teachers, added, “We are proud to co-sponsor the SEIT alongside our partner Mahindra Susten and to contribute to India’s renewable energy ambitions. This milestone not only reinforces our commitment to invest globally in green and transition assets but also demonstrates the attractiveness of renewable energy investment opportunities in India.”
Avinash Rao, CEO of the investment manager to SEIT, said: “Renewable energy is a core sector for India with significant growth potential. The government’s focus on renewable and sustainable energy makes the industry very attractive for investments thereby enabling further growth of our portfolio.”
