Mahindra and Mahindra will take over a solar projects developer within the group for ₹288 crore

Mahindra and Mahindra shares are up over 30% in 2023 so far.

Emergent Solren is engaged in the business of developing and operating renewable solar projects with a capacity of 360 megawatts.

Post the acquisition of Emergent Solren by Mahindra and Mahindra, it will sell the same to Sustainable Energy Infra Trust (SEIT), a joint  venture between the Mumbai-based $19 billion conglomerate and the Ontario Teachers' Pension Plan (a pension fund based out of Canada).

In September 2022, Mahindra and Mahindra said that Mahindra Holding will hive off some assets to a new company, which would then be sold to an infrastructure investment trust (InvIT) to be set up by a Canadian pension fund and its affiliates. The latest takeover of Emergent Solren is part of the same arrangement.

InvITs function like mutual funds that collect money and invest in specific projects. Investors in InvIT can buy and sell units. It is a fractional ownership that, experts say,  are less volatile than stocks and give better returns than fixed deposits.

At 9.47 AM, shares of Mahindra and Mahindra were trading 1.28% higher at ₹1,655 apiece on the BSE.