The International Finance Corp (IFC), Asian Infrastructure Investment Bank (AIIB), and Dutch pension fund APG Asset Management are among the international investors competing to invest up to $250 million (roughly 2,080 crores) in Mahindra InvIT, according to an Economic Times report.
According to individuals who spoke with ET, Mahindra Susten’s companies, which have a market worth roughly $1 billion, include an independent power production (IPP) unit and an engineering, procurement, and construction (EPC) company focused on renewable energy.
The agreement is probably going to be finalized within the next two to three months, according to a person with knowledge of the situation. All three of the international investors are now performing due diligence on the assets that make up Mahindra InvIT.
The acquisition would involve both primary and secondary share sales for the about 35% holding in Mahindra InvIT, the source informed the news outlet.
In order to fulfill the minimum shareholder criteria, Mahindra Susten would later bring in a few local investors, such as mutual funds or family officials, according to ET.
With an equity value of 2,371 crores ($300 million), the Canadian fund Ontario Teachers’ Pension Plan Board (OTPP) now has around a 30% share in the renewable energy company Mahindra Susten Pvt. Ltd.
According to the Securities and Exchange Board of India‘s rules, the agreement calls for the creation of an infrastructure investment trust (InvIT).
For the transaction, Ambit served as the financial adviser to Ontario Teachers’ and Avendus Capital served as the financial advisor to the Mahindra Group.
In May 2023, the Mahindra Group and Ontario Teachers’ investigated the possibility of selling a further 9.99% share in Mahindra Susten. Over the course of the following seven years, the Group invested these monies as well as an additional sum of up to Rs. 1,750 crore in the InvIT and the company.
