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    Sonal Shridhar Shinde in News

    20-Sep-2022 08:09 AM


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    Mahindra Susten opens many opportunities for Ontario teachers

    The $19 billion Mahindra Group operates in several sectors. An interesting development is the Ontario Teachers' Pension Plan Board's decision to acquire a 30% stake in unlisted Mahindra Susten, a renewable energy company for $300 million (Rs 2,371 crore), and plans to set up an infrastructure investment company. . InviT) will be organized in FY24. According to the Mahindra Susten website, it offers a variety of solar solutions from the design of PV (photovoltaic) systems, solar inverters and implementation. Recently, the company has entered the international market by providing solar panels and solar inverters for homes and businesses. In terms of structure, the company is part of Mahindra Partners, the $1 billion equity arm of the Mahindra Group. In addition to Susten, Mahindra Partners has a portfolio of businesses and industries including retail, steel, logistics, vocational education, consulting, media, luxury and shipbuilding and logistics. The stated goal is to make Susten a billion dollar company.

    A note published by India Ratings last June spoke of "expectations of improved profitability for Susten from FY22, likely to be driven by better performance in its supply chain and Solar Engineering Construction (EPC), once completed." Done in FY21.” As a result. of the pandemic, Susten saw its revenue fall - it was Rs 2,619 crore in FY21. 19 and fell to Rs 952.3 crore in FY21, while EBITDA fell from Rs 93.5 crore to Rs 58.2 crore. "However, we expect that Susten will improve the number of its operations in the short or medium term, with its current approval and efforts to continue preparing for other orders , the document adds. Susten and Ontario Teachers' will also look to sell another 9.9% share in the first place by May 31, 2023. Kranthi Bathini, an equity analyst at WealthMills Securities, pointed out that India's economic environment is perceived as favorable by global investors. "This has led to India-focused private equity (PE) funds investing heavily," he says. For him, the connection of PE and green energy, in particular, will remain history for some time. “Big business houses like Reliance have made a lot of investments in green energy recently and at some point will raise funds. Green or renewable, it is the taste of the season. The largest listed company in this space is Adani Green Energy with a current market capitalization of over Rs 3.8 crore.
    Source: Business Today

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