Keen To Enter Into RE, OTPP Offers Rs 2300 Cr For 49% Stake In Mahindra Susten

One of the largest pension funds in Canada, Ontario Teachers’ Pension Plan (OTPP), is looking to acquire a stake of close to 49%, worth Rs 2,300 crore in Mahindra Susten Pvt Ltd, thereby valuing the entity at Rs 4,600 crore, inclusive of debt. An exclusivity clause has been signed between OTPP and Mahindra Susten.

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With assets worth $36 billion in infrastructure globally, OTPP plans to invest another $16 billion in the next five years. The deal will mark the debut of OTPP in the Indian renewable energy space.

Established to build solar parks under the National Solar Mission, Mahindra Susten forayed deep into engineering, procurement and construction (EPC), operations and maintenance, rooftop solar panels, data management and software services for third-party developers such as ReNew Power, Azure, SB Energy and others. The company continued its march towards financial security simultaneously exploring a way to offload a stake. In the last two years, this is the third attempt i by the Mahindra Group to offload a stake in Mahindra Susten.

Wind Turbine & Solar PV hybrid

The pandemic disrupted several projects of Mahindra Susten. It lead to the cancellation of a few overseas projects and loss of several construction days last year. Not withstanding this challenge, the profile of solar projects capacity of the entity stands at 1.2 GW across the country. As an independent power producer, Mahindra Susten’s primary operational assets include a 337.50 MW park at Rewa, a 175 MW project in Bikaner, an 84.50 MW plant at Charanka, Gujarat, and a 59.8 MW plant in Telangana. It executed many projects while a few more are under construction with a peak capacity around 4 GW.

On the other hand, the OTPP has yet to debut in the renewable energy sector in India. However, the Canadian fund is a well known name in the sector of roads. With the clean tech sector witnessing growth and demand, OTPP seems to have a change of mind and heart and is eager to join the ranks of CPPIB, CDPQ.

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