Mahindra Group and Ontario Teachers’ Pension Plan co-sponsor India’s largest renewable energy InvIT, SEIT

The Mahindra Group and the Ontario Teachers’ Pension Plan Board have collaborated to co-sponsor India’s largest Infrastructure Investment Trust (InvIT) in the renewable energy domain. The InvIT, named “Sustainable Energy Infra Trust” (SEIT), made its debut on the National Stock Exchange (NSE) after raising primary capital of Rs 1365 Crore ($165 million) through the initial offer of units. The Offer garnered significant subscription from global and Indian investors, including the Asian Infrastructure Investment Bank (AIIB).

Focusing on scaling up the renewable energy sector in India, SEIT holds operational renewable power assets with a generation capacity of approximately 1.54 GWp, seeded by Mahindra Susten. Mahindra Susten, the renewable energy arm, will utilize the capital infusion of Rs 897.8 Crore ($108 million) to support its growth and develop a future pipeline of renewable energy assets.

Mahindra Susten and SEIT have established a Right Of First Offer (ROFO) arrangement, ensuring that renewable energy assets developed by Mahindra Susten will be prioritized for sale to SEIT in compliance with InvIT Regulations. Both Mahindra Group and Ontario Teachers’ have committed substantial investments of up to Rs 3050 crore ($368 Million) and Rs 3550 crore ($428 million) respectively into Mahindra Susten and SEIT. The collaboration underscores a significant stride in advancing renewable energy initiatives in India.