Canada’s Brookfield Asset Management Inc. is planning to buy a substantial stake in Mahindra Susten.

Avendus Capital is running the sales process for the potential deal that values Mahindra Susten at an enterprise and equity value of around Rs.7,000 crore and Rs.1700 crore, respectively. Mahindra Susten has a growing engineering, procurement and construction (EPC) business, besides 1.5 gigawatts (GW) of solar assets.

Reports suggest that, Brookfield is planning to buy a significant stake in Mahindra Susten at the holding company level. This includes EPC, utilities and C&I (commercial and industrial) business.

Brookfield has over $ 20 billion assets under management in India and more than $ 690 billion in assets globally.

Mahindra Susten builds and sells solar power projects and also offers diversified services in the renewable energy and cleantech space. The development follows parent Mahindra and Mahindra Ltd’s earlier announcement to unlock value in its units, including Mahindra Susten, by bringing in new investors.

According to reports, the sale process saw participation from companies, including Torrent Power, European alternative asset manager EQT and Temasek backed O2 Power, and Amplus Energy; and follows an earlier bid by Brookfield to buy Mahindra Susten.

Mahindra Susten is one of our growth gems. It is a key contributor to our global leadership in climate change. Company has no plans to give up majority but will consider partners who can help to grow the business faster.

There is a continuing interest in the Indian green energy space amid a growing focus on environmental, social and governance (ESG) investing. At the COP-26 summit in Glasgow last November, India announced plans to boost non-fossil fuel power generation capacity to 500GW by 2030.