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Mahindra To Invest Rs 111.7 mn In Neon For 30 MW Captive Solar Plant
POWER & RENEWABLE ENERGY

Mahindra To Invest Rs 111.7 mn In Neon For 30 MW Captive Solar Plant

Mahindra & Mahindra will invest Rs 111.7 mn in Neon Hybren Private Limited to fund a thirty megawatt (MW) AC captive solar generating plant in Punjab. Neon is a subsidiary of Mahindra Susten Private Limited, which is in turn held by Mahindra Holdings Limited as the ultimate parent. The investment was disclosed in a regulatory filing and is structured as a subscription to equity shares under a Share Subscription and Shareholders Agreement.

The company indicated that power will be supplied on a captive basis from a grid connected, ground mounted photovoltaic plant and that full acquisition of the project is expected to be completed by December 31, 2026. Mahindra will subscribe to such number of shares as may be determined in accordance with terms agreed and the investment may be made in one or more tranches. The proceeds are intended to be used for business operations and general corporate purposes related to the project.

Following completion of the transaction Mahindra will directly hold equity shares in Neon and will be required to hold at least 26 per cent of its share capital. Mahindra Susten Private Limited has also approved the acquisition and its post allotment shareholding in Neon will be diluted to 74 per cent from 100 per cent. Neon will continue to operate as an independent power producer and as a provider of distributed energy solutions, including rooftop solar for commercial, industrial, institutional and residential customers.

The investment will add to Mahindra Susten's renewable energy portfolio after the company commissioned 560 megawatt peak (MWp) of utility scale solar capacity in calendar year 2025, reflecting continued expansion in utility scale projects. The firm anticipates that the captive plant will supply clean energy to associated industrial and commercial offtakers, reducing reliance on grid supplied power. The transaction timetable targets completion by the end of 2026 and is expected to support the group's broader distributed energy ambitions across regions. Observers note that the move aligns with prevailing trends of corporate investment in onsite renewable generation.

Mahindra & Mahindra will invest Rs 111.7 mn in Neon Hybren Private Limited to fund a thirty megawatt (MW) AC captive solar generating plant in Punjab. Neon is a subsidiary of Mahindra Susten Private Limited, which is in turn held by Mahindra Holdings Limited as the ultimate parent. The investment was disclosed in a regulatory filing and is structured as a subscription to equity shares under a Share Subscription and Shareholders Agreement. The company indicated that power will be supplied on a captive basis from a grid connected, ground mounted photovoltaic plant and that full acquisition of the project is expected to be completed by December 31, 2026. Mahindra will subscribe to such number of shares as may be determined in accordance with terms agreed and the investment may be made in one or more tranches. The proceeds are intended to be used for business operations and general corporate purposes related to the project. Following completion of the transaction Mahindra will directly hold equity shares in Neon and will be required to hold at least 26 per cent of its share capital. Mahindra Susten Private Limited has also approved the acquisition and its post allotment shareholding in Neon will be diluted to 74 per cent from 100 per cent. Neon will continue to operate as an independent power producer and as a provider of distributed energy solutions, including rooftop solar for commercial, industrial, institutional and residential customers. The investment will add to Mahindra Susten's renewable energy portfolio after the company commissioned 560 megawatt peak (MWp) of utility scale solar capacity in calendar year 2025, reflecting continued expansion in utility scale projects. The firm anticipates that the captive plant will supply clean energy to associated industrial and commercial offtakers, reducing reliance on grid supplied power. The transaction timetable targets completion by the end of 2026 and is expected to support the group's broader distributed energy ambitions across regions. Observers note that the move aligns with prevailing trends of corporate investment in onsite renewable generation.

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