Mahindra Group and Ontario Teachers’ Backed InvIT, Sustainable Energy Infra Trust, Debuts on Indian Stock Exchange

An investment trust (InvIT) jointly supported by India's Group and 's Ontario Teachers' Pension Plan Board marked its trading initiation on Monday, boasting an offer size of 22.63 billion rupees ($273 million), as confirmed by both entities.

Sustainable Energy Infra Trust (SEIT), formed with the objective of owning and operating renewable power generation assets in India, made its debut on the National Exchange with an issue price of 100 rupees per unit, as per exchange data.

The offering resulted in SEIT raising 13.65 billion rupees, while Mahindra Susten, the green energy arm of the diverse Mahindra Group, secured 8.98 billion rupees, according to an official statement. The disclosure did not specify the current stake, if any, held by Mahindra Susten, Mahindra Group, and Ontario Teachers' in SEIT.

Infrastructure investment trusts have gained traction in recent years, aligning with India's increased focus on infrastructure development, particularly in anticipation of the upcoming general elections this year. The statement highlighted that notable global and Indian investors, including the Asian Infrastructure Investment Bank, subscribed to the offering.

SEIT is granted the right of first refusal on assets developed by Mahindra Susten. Committing substantial investments, Mahindra Group and Ontario Teachers' pledged up to 30.50 billion rupees and 35.50 billion rupees, respectively, distributed between Mahindra Susten and SEIT.

Kotak Mahindra Capital, Axis Capital, and Avendus Capital acted as placement agents for the deal. The debut on the Indian stock exchange reflects the growing interest and confidence in sustainable energy ventures, with prominent industry players contributing significant financial backing to such initiatives.

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