Mahindra and Mahindra (M&M) has announced that the company will procure solar power from a 30 MW (AC) group captive solar power project in Punjab, being developed by Neon Hybren, a step-down subsidiary of M&M.
Accordingly, the company will invest up to INR 11.17 crore in one or more tranches through a preferential share issuance in Neon Hybren to pick up 26 percent stake as per the captive consumption requirement. Post this, Mahindra Susten’s stake will be diluted to 74 percent. However, Neon Hybren will continue to remain a step-down subsidiary of M&M.
“The Company has approved the acquisition of 26 percent stake in one or more tranches in the paid-up equity share capital of Neon and subsequently executed the Share Subscription and Shareholders Agreement (SSSHA) with Neon and MSPL. Upon completion of the said transaction, MSPL’s post-allotment shareholding in Neon will be diluted to 74 percent from 100 percent. However, Neon will continue to remain a step-down subsidiary of the company,” M&M stated in a regulatory filing.
This initiative is in line with the company’s wider clean energy roadmap, which aims to source 100 percent of its electricity from renewable sources by 2030 and achieve carbon neutrality for Scope 1 and Scope 2 emissions by 2040.
